AMA Group has provided a business update including details of a $125 million equity raising to help revitalise its operations.

The crash repairer says its existing syndicated debt facilities have been extended to December 31 next year and a portion of the capital raising will go towards repaying $50 million of senior debt.

“This equity raising repositions the balance sheet to allow the business to focus on profitable growth as a dedicated collision repairer,” CEO Mathew Cooper said. “The past nine months has seen strong operational performance across AMA Group.”

Unaudited earnings before interest, tax depreciation and amortisation (EBITDA) in the June quarter rose 43.1% to $14.6 million, and revenue grew to $237.7 million from $226.4 million.

The $14.6 million is based on pre-AASB 16 accounting standard calculations.

During the period, the business experienced a reduction in repair volumes, but this was more than offset by a higher average repair price and gross margins.

Normalised unaudited EBITDA for 2023-24 was $49 million, up 125.1%.

The business is seeing “continued positive turnaround momentum”, AMA says.

AMA says the vehicle collision repair business – made up of Capital Smart, AMA Collision and Specialist Businesses – continued to perform ahead of expectations in the June quarter, with revenue up 4.9% from a year earlier.

“Capital Smart outperformance more than offset challenges in AMA Collision.”

The listed crash repairer has been working to turn around its business and, in recent months, it has sought new pricing agreements with key insurer customers.

Last month AMA named Brian Austin as chairman in a board shake-up and announced plans to sell its ACM Parts business to become a “pure” collision repairer.

It expects to complete the ACM Parts sale this financial year, with Pitcher Partners appointed to advise on the process.