Collision repairer AMA Group has reported a full-year profit of $7.7 million despite easing volumes in the fourth quarter, and says insurer relationships are improving in a key division.

The company, which operates from 140 locations in Australia and four in New Zealand, posted a $6.2 million loss the previous financial year.

AMA says normalised earnings before interest, tax, depreciation and amortisation rose 8.6% to $68 million despite elevated fuel prices and public transport concessions affecting the last quarter – traditionally the strongest for repair volumes.

Earnings in the Capital Smart division, in which Suncorp has a 10% stake, fell $6.5 million to $51.9 million. AMA says the number of “drivable repairs” – the division’s focus – has fallen since the Persian Gulf conflict began in March. There is less available work as customers delay minor repairs, along with some reduced road use.

The previous financial year included a volume incentive from Suncorp, which was not achieved in the past 12 months.

Earnings from the AMA Collision business, which undertakes drivable and non-drivable vehicle repairs, rose $3.2 million to $10.6 million.

“Insurance relationships continue to improve and strengthen, with volume growth seen across major insurers,” the company said.

AMA’s other operations include the Wales heavy vehicle repairs division, specialist businesses and ACM Parts.

MD Ray Smith-Roberts, appointed in April last year, says AMA is increasingly becoming a vertically integrated business that combines repair services with parts sourcing and supply, giving greater control over repair quality, turnaround times and costs.

“Being vertically integrated, with multiple income streams, provides us with a key competitive advantage,” he said.

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