busnews.com.au July 2019 ABC^9The Australianbusindustrynowhasanotherfullylocallyownedandoperated
body builder, after Gemilang Australia shareholders bought out the 50 per
cent shareholding held by Gemilang Asia Pacific Ltd, it’s reported recently.
As of June 27, 2019, with Gemilang Australia Pty Ltd now 100 per cent
Australian owned and operated, it has also entered into a, “...long-term
distribution agreement with Gemilang Coachwork Sdn Bhd (Malaysia) for the
supply of the Eco Range aluminium bus bodies to Australia and New Zealand”.
According to the company, for the most part these changes will not affect its
customers and suppliers, and there will be no significant changes to the way it
does business with them, it states.
The change in shareholding is, however, an important step forward for
Gemilang Australia in realising its vision “...to bring manufacturing back to
Australia and in supporting local industry as best we can”, it stated.MORE FOR OZ, IN OZ
Gemilang Australia additionally entered into a joint venture (JV) arrangement
with established Ballarat, Victoria manufacturer OzPress Industries and is in
the process of transitioning more of its bus build to Australia, it explains.
When ABC magazine contacted Gemilang Australia, it asked if it were
planning to open any other outlets across Australia at this stage. Speaking
exclusively, a spokesperson replied: “We have a pre-delivery facility in
Smithfield, NSW, which we have operated from since 2017, where our full-time
staff finish new vehicles, as well as support buses on the road.”
“We’ve also had fantastic support from Darren Wales and Wales Bus Repairs
along that journey, where we delivered six electric buses to Carbridge for
Sydney Airport; 38 MAN A95 buses for the B-Line project in 2017; 28 Scania
K310 Euro 5 buses for Transit Systems in 2018; and the four BYD electric buses
for Transit Systems in June,
2019.
“We are the only bus builder
with a significant footprint of
electric buses on Australian
roads, having delivered over
20 to the market since 2016.
“We look forward to
announcing a bold initiative
in the renewable space in the
coming months,” they said.on the Australian Stock Exchange, dated June
12, 2019, Wales was clearly highlighted as part
of AMA Group’s growth plans.
With “trading conditions for the AMA Group
Limited ... tracking within expectations”, group
CEO Andrew Hopkins delivered the following
update on the status of acquisitions:
“The acquisition pipeline for AMA remains
strong. We are delighted to confirm that
we have increased our promised revenue
acquisition run rate in the second half to in
excess of $120m.
“The current list of acquisitions are in line
with our new strategic direction of growing
into the heavy motor space and, most
importantly, taking the third largest east
coast consolidator.”
Hopkins said that, based on the
current pipeline, by mid-June AMA
would have finalised binding agreements/
open (greenfields) for 11 panel and
related businesses.
BIGGER DEBT
Hopkins concludes that these acquisitions –
including greenfield enterprises (essentially
new and undeveloped sites) – are expected
to contribute in excess of AUD$120M revenue
and approximately AUD$12M of EBITDA
(earnings before interest, tax, depreciation
and amortisation) on an annual basis once
fully integrated.
“Multiples for the businesses being acquired
have been on average 3.8 times,” he said.
“The current acquisitions will be funded
through a combination of debt and cash.
“To accommodate the acquisition pipeline
AMA has recently increased its debt facility
with NAB by C$50m to C$150m. This has been
done on similar terms to its existing facilities.
“The acquisitions, which are subject to
customary completion conditions, will settle
over the coming months,” he explained.
Commenting on the acquisitions, Hopkins
added: “We are very happy with the second
half of 2019 and pleased that the new team
structure and new strategy is continuing to
deliver results.
“The acquisitions team has been very
busy in the second half with us expecting to
finalise binding agreements for acquisitions/
open (greenfields) with annualised revenue in
excess of $120m of by June 30.
“This is well ahead of what we expected
when we presented our results for the first
half. We see no slow down for the business
with new entrants and look forward to a
strong and robust 2020 under the new
management regime,” he explained.
The AMA expects to release its full year
results on Monday, 26 August.
GEMILANG NOW
100 PER CENT AUSSIE
Pics: Gemilang here is now fully
Australian owned and operated.