AMA Group Limited (AMA) Earnings Call Transcript & Summary

Good afternoon, ladies and gentlemen. My name is Caroline Waldron, and I am the Chair of AMA Group Limited. Welcome to the 2023 Annual General Meeting. We have a quorum, so I declare the meeting open. On behalf of the AMA Group Board, I would firstly like to formally acknowledge the many traditional owners of country throughout Australia and recognize their continuing connection to the lands, waters and communities. We pay our respects to First Nations cultures and to elders past and present and to any First Nations people joining us today. I would like to start by outlining some procedural matters. In addition to our in-person meeting here in Melbourne, we are also conducting the meeting with a virtual component. This hybrid format allows shareholders and proxies wherever they may be to attend virtually. All shareholders and proxies can ask questions and vote today. For those of you online, did you experience any technical difficulties, a recording as well as transcript of our AGM will be available on our website following the meeting. If we experience any technical issues during the meeting, a short recess may be required. Should this occur, we will communicate accordingly. I would now like to introduce your Board. In front with you today, our nonexecutive directors, Talbot Babineau, Kyle Loades and Simon Moore. We are also joined by our Executive Director and Group CEO, Carl Bizon. Also in attendance today are members of AMA Group's executive leadership team, Maritza Araneda, partner of KPMG, the company's auditors; and representatives from our share registry provider, Computershare. The online platform is now open for shareholders' questions, which I encourage you to submit as early as possible. To ask a written question, please follow the instructions as displayed on the screen. Please note that while you can submit questions from now on, I will not address them until the relevant time in the meeting. Please also note that your questions may be moderated, or if we receive multiple questions on one topic, amalgamated together. For those shareholders who wish to ask a verbal question an audio question facility is available during the meeting. To use this service, please pause the broadcast on the Computershare platform and dial in via phone using the dial-in number as displayed under the broadcast window. You will be granted access and will listen to the meeting until you are introduced to ask your question. For those shareholders in person today, if you have any questions or comments on a particular item of business, please state your name or the organization you represent before doing so. Finally, due to time constraints, we may not get to answer all questions. If this happens, we will answer them in due course. Voting today will be conducted by way of a poll on all items of business. Instructions on how to vote through the Computershare platform are displayed on screen. To provide everyone with an opportunity to vote and in any case anyone cannot stay for the whole meeting, I will now formally open the poll on all resolutions. I will give you a warning before I move to close voting. For those voting holders physically in the room with me today, you would have received a voting card upon registration. Please complete the reverse of the voting card. Should you require assistance to do this, we have Computershare staff available to assist you. You can change your vote up until the time I declare voting closed. Okay. I would like to start my address by advising that after strong trading in the first quarter of financial year 2024, which I will refer to as FY '24 and October trading in line with expectations, we have tightened our FY '24 guidance. We have increased the bottom of the range and our updated guidance is $89 million to $96 million normalized post-AASB 16 EBITDA, or $42 million to $49 million normalized pre-AASB 16 EBITDA, noting that we are heading into the seasonally weaker summer period and expect the quarterly results, which will be released this coming January, to reflect this seasonality. This update and guidance follows a tough year ending 30 June 2023 FY '23. We were faced with external headwinds of industry-wide labor constraints and related throughput challenges combined with parts and wage inflation while operating under largely fixed price repair contracts. As a result, the group reported an FY '23 normalized post-AASB 16 EBITDA of $65 million. While this represented a $43 million increase on the prior year with quarterly EBITDA improving throughout the period, it was short of our original FY '23 guidance of $70 million to $90 million, a big disappointment both for us and for you, our shareholders, and the value of your company suffered. The better news is that as evidenced by our most recent quarterly trading update, the operating performance of our business has improved over the last 6 months, while our return to growth may not be linear on balance, it gives us greater confidence in our ability to deliver our FY '24 guidance. Our aim is to continue to build a customer-centric culture at all levels of the organization to ensure AMA Group is the repairer of choice for our customers through excellence in the delivery of service to vehicle owners. In the immediate term, we are committed to focusing on 6 key areas as we reposition the group for growth and long-term success. First, let me give you some details on our 3 governance focused areas. Our first governance priority when I took over as Chair was to build a fit for purpose Board comprising people with the right mix of skills and experience to adopt a structured approach to Board refresh. To this end, we recently announced the appointment of Kim Stewart-Smith to the Board from 1 December 2023. Kim, who is here today, will also take on the role of Audit Committee Chair from that date. Today, we also announced the appointment of Brian Austin to the Board from 1 December 2023. Both Kim and Brian experienced ASX Directors and will complement the skill set of our existing directors. We are also undertaking a search for a new nonexecutive Director with collision repair, automotive parts or similar sector skills with a particular focus on those who have built a customer-first culture in an organization. In addition, after 5 years on the Board, Simon Moore has advised his intention to retire from the AMA Group Board. We take this opportunity to thank Simon for his dedicated service to AMA during his tenure. To ensure an orderly transition and hand over to Kim Stewart-Smith, he will leave the Board in February 2024 following delivery of the group's 1H '24 results and in order to continue supporting the current refinancing activities. At this point, I would like to acknowledge our recently retired Board members, Anthony Day and Paul Ruiz who after nearly 5 and 3 years respectively retired from the Board on 1 September 2023, both served AMA Group tirelessly and with uncompromising dedication and for that, we thank them. Moving now to our second governance priority, the Board's commitment to creating better alignment between remuneration and shareholder interests. We have taken an important step forward in this regard by announcing an overall nonexecutive director fee reduction and introducing a minimum shareholding guideline for all nonexecutive directors. The Board continues to progress the review of the management remuneration framework. The Board's third governance priority is to ensure a smooth CEO transition. The new CEO search is progressing to plan. We have the final interview stage now and expect to land on a preferred candidate and finalize arrangements within the next few weeks. With a well-established management team in place and guidance from the Board, we are confident the leadership and operational teams will continue to deliver solid results for the business during this process. Next, let me address our 3 operational priorities. First, the refinancing of our debt facilities, including providing a clear solution for the current $50 million of convertible bonds, which are maturing in March 2027, have a cash redemption option for bondholders in March 2025. Today, we have formally launched the process with a group of prospective lenders who have shown strong interest in the transaction, and we expect to be well progressed with the refinancing by the release of our half year results in February 2024. Our second operational priority is to deliver on project shift. This involves operational initiatives, including enabling a full spectrum of drivable repairs at the majority of Capital S.M.A.R.T locations to improve efficiency and best meet our customers' needs in the long term. The final operational priority is optimizing our business so that we can sustainably return to growth. This includes building on our solid foundations to ensure we are a customer-centric organization at every level. As the largest collision repairer across the combined Australia, New Zealand market, AMA Group is uniquely positioned to optimize our business operations to deliver consistently high quality service to both our insurer customers and vehicle owners so that we become the repairer of first choice. We do this in a sustainable way, we are driving revenue opportunities to enable us to invest in technology and training and developing our team while continuing our disciplined approach to cost management and prioritizing the safety of our team who are critical to our success. As we moved into the first quarter of FY '24, we continue to progress the group's strategy with 2 things of note. First, we continue to tightly manage spending, with a review of overhead costs expected to deliver approximately $5 million in annualized savings by the end of financial year '24. These savings will be redeployed to expedite our growth initiatives. Second, as the car parc evolves, we are committed to investing in new technologies that enable us to repair the vehicles of the future. Today, we are pleased to announce the group's first phase investment in fixed ADAS technology to be delivered by AMA Group's dedicated ADAS solutions business, Tech Right ADAS solutions or Tech Right. The technology will initially be installed in 6 sites across the AMA Group network with the intent to also service AMA group's nearby repair facilities. Tech Right's business performance will be assessed over the coming months, at which point further investment decisions will be made, including the location of additional installations and capital to be deployed in relation to rolling out ADAS collaboration technology further throughout the AMA Group network. This address would not be complete without a mention of our $55 million equity raise in September. The raise comprised of fully underwritten institutional placement and a fully underwritten accelerated nonrenounceable entitlement offer. In solidarity with our shareholders and to demonstrate our belief in the AMA Group business going forward, the nonexecutive directors have all supported the raising. This participation is, of course, subject to shareholder approval today. The capital raising will facilitate the principal repayment of $35 million of existing senior bank debt by 31 December 2023. It also provides liquidity and working capital through the expected seasonal low trading of the summer months and supports the execution of refinancing of residual debt facilities throughout FY '24. While Carl will provide a more detailed update on FY '23, I would like to personally thank Carl for taking the decision to step in as CEO during the time of need and wish him all the best as he retires from full-time operational roles. As I said, upon taking up the role of chair, our shareholders have been patient and our team members resilient as we have weathered the challenges of the last few years. I thank the approximately 3,300 team members who are key to delivering for our customers with an incredibly hard work during FY '23. We now have the foundation in place to allow us to harness the exceptional talent within our business to deliver meaningful value to our customers, team and shareholders through operational excellence. On behalf of the Board, I would like to thank our insurer and supplier partners and our customers for their ongoing support. Most importantly, thank you to you, our shareholders, for your support of the AMA Group. We are ready for the next phase of AMA Group, and I look forward to working with the Board and management as we lead this business into the future. With that, I will hand over to Carl Bizon, who will cover key achievements in FY '23 in his final presentation to you as the Chief Executive Officer of the group. This will be followed by a short trading update from Matthew Cooper, AMA's Group, Chief Operating Officer.

Thank you, Caroline. I would also like to welcome everyone who is joining us in person and online for today's meeting in what will be my last AGM and indeed my last day as the AMA Group's CEO. First, a reflection on FY '23. In the early months of FY '23, we approached our insurer customers to discuss pricing on our contracts. This was fundamental to our viability as a business, although uncomfortable at the time. During this process, we moved away from unprofitable work across our AMA collision portfolio. While this resulted in some short- to medium-term repair volume disruption, in recent months, some insurers who we had not been able to reach agreement previously have begun to reengage with us this time on better pricing terms. While many insurer contracts still do not have dynamic adjustment mechanisms to deal with external pressures, such as inflation or increasing repair severity, we now have established relationships and a new cadence for engagement to continue to progress this work. We continue to focus on attracting, retaining and training our people with our Take the LEAD health, safety and environment program, frontline leaders training and focus on I-CAR training with 12 sites now I-CAR Gold accredited and a focus on our market-leading apprenticeship program, which closed the year with 373 apprentices across the network. Parts disintermediation is a core element of AMA Group's strategy. And during the year, ACM Parts moved from its warehouse in Arundel, near the Gold Coast to Hemmant near Brisbane. This much larger facility will enable the ongoing execution of the parts supply strategy by supporting increased breadth of inventory and improved geographical reach. The ACM Parts Warehouse at Arundel was subsequently converted into an ACM Collision site, showcasing new branding and customer experience. The group significantly progressed with the new Heavy Motor site in South Australia. This site has now been completed and seen the relocation of the All Transport team into the new, Wales branded facility and the team commenced operations at the new site during the first quarter of FY '24. I would like to take a moment to reflect on what the AMA Group team has achieved during my tenure as the CEO. We have reset the base business. We have established a new leadership team, improved governance, substantially improved safety across the business, developed an industry-leading apprenticeship program, and substantially improved team member satisfaction and engagement. Most importantly, restored profitability following the substantial impact of the COVID-19 era with a more than $40 million increase in normalized post-AASB 16 EBITDA from FY '22 to FY '23 and now turned the group's focus to growth and innovation. In closing, I would like to thank the Board, the AMA Group team who are at the heart of everything we do, our insurer, fleet and other partners, our end customers and our shareholders for their ongoing support. It has been a privilege to serve as the CEO of this business. It has been a challenging but also a rewarding experience. I'm exceptionally proud of everything that has been achieved and I look forward to seeing the company evolve into its next phase under new leadership. I'm now going to hand over to Matthew Cooper, company's Chief Operating Officer, to provide an operational update for FY '24.

Thank you, Carl, and welcome to everyone who's joining us in person and online. Caroline invited me to provide a brief update today, and I can confidently say that a lot has already been achieved this financial year and more planned in the fullness of the year. I'm pleased to share some of that with you today. The first quarter of FY '24 was the fifth straight quarter of growth in post-AASB 16 EBITDA, and October traded to expectations. We know our team is at the center of our success. And so we are continuing to -- we are continuing leadership training to support retention and development of our operational leaders. We continue to focus on safety through our Take the LEAD program and ended October with an LTIFR of 2.25. We are continuing to build our workforce. Labor supply has seen ongoing improvement with a net increase in group headcount of over 90 team members from 1 July to 17 November. Our apprentice program has grown to a total of 443 apprentices across our network at mid-November. Over 100 technicians from the Philippines have recently accepted employment offers and will arrive at the coming months. And of course, we continue onshore hiring of experienced technicians. The Capital S.M.A.R.T team are firmly focused on delivering a transformation plan with a focus on improved customer experience and operational effectiveness. Project SHIFT is well underway to transition the Capital S.M.A.R.T operating model and to expand the scope of drivable repair offered at most locations across the network. Feedback from our sites that have recently converted has been very positive. AMA Collision officially opened the flagship site at Arundel in Queensland, and our RMA Hallam team have moved into the reopened RMA Dandenong site in Victoria, which is larger and more productive site. We have a new Prestige site underway in Gosford in New South Wales, which will see the Harris & Adams team moving into a new larger site, once completed. In Townsville in Queensland, soil has been turned for a greenfield facility which we will relocate an existing facility and provide significantly more capacity than the existing site to service growing demand in the area. We also have underway -- we are also underway -- well underway with plans to reopen the hibernated Craig Hall facility in the ACT in the 2024 calendar year. Heavy Motor has continued to deliver strong revenues and the new substantially larger site in South Australia is now open, hosting their official opening next week. ACM Parts has continued to grow Parallel and Aftermarket Parts revenues and hosted the very successful opening of the Hemmant, Queensland warehouse in October. We're looking forward to new business, both with the introduction of an in-house ADAS solution, as Caroline already mentioned, and with a meaningful engagement with one of our insurance partners for new work and with new pricing. Thank you to the AMA Group team who are central to our success and to our suppliers, our insurer, fleet and other partners, our end customers and our shareholders for your support. With that, I'll hand back to Caroline for the business of the meeting.

Thank you, Matt. I confirm that Christina Piccolo from our share registry Computershare has been appointed to act as returning officer for the purpose of conducting and determining the results of the poll. I have written advice on the proxies received to date prepared by our share registry. Proxy votes represent -- received represent circa 49.12% of the issued share capital of the company. As Chair of the meeting, I will vote in favor on open proxies for all resolutions to be put to the meeting. The notice of meeting was made available to shareholders on the 20 October 2023. And unless there are any objections, I will take the notice, including explanatory notes, as read. The first item of business is to receive and consider the company's financial statements, director's report and auditor's report for the financial year ended 30 June 2023. A copy of our 2023 annual report was made available to shareholders in 7 September 2023 and is also available on AMA Group's website. There is no formal resolution to put to the meeting in relation to the adoption of the 2023 annual report. However, I and, the management team here today, will respond to questions or comments from shareholders in relation to the annual report. Maritza Araneda of KPMG is also available to respond to any questions or comments relating to the audit and financial statements. We'll also take questions about or any comments you may have in relation to the management of the company. I will first take any questions or comments that have been received online. Alex, any online questions or comments being received?

Yes, they have. There are no questions from the phone lines, however, we have got some general questions regarding the business, which I will address now. Our first question is from Steven Maine, who asks our relations with Suncorp. Are they feeling guilty or selling us Capital S.M.A.R.T or COVID crashed our industry?

So from our perspective, I think relations with Suncorp are very solid. We have relationships with them at all levels of the organization. And I think that we are very constructive in our engagement with them. Carl, would you like to comment on anything else in relation to Suncorp?

No, I think, Steven, I think at the time, the Capital S.M.A.R.T transaction was contemplated and subsequently executed. COVID was nowhere in sight. So I think it's -- I think it's unfortunate for the organization's history that COVID arrived immediately after that transaction was completed. Also respect your question in connection to the 2 events, it's relevant.

The next question is from Steven Maine. Well done for staring down the big and highly profitable insurers to get fair contracts. Smash repair is still a highly fragmented industry, but who are the second and third biggest smash repair operators in Australia and do any of the insurers own their own smash repair facilities?

I think this one is straight out to management, is an operational question.

So Steven, the only insurer and group is Repair Hub, which is a venture of IAG. So apart from the balance of the repair industry is privately or publicly owned.

There are no additional -- sorry, there is one other final question for this area, which is actually for Simon. Thank you to Simon for his many years of service. This is from Steven Maine as well. It is also always helpful for investors to have access to some exit perspectives from retiring directors. In his final AGM contribution as an AMA Group Director, Simon, please comment on what he regards as the best decisions AMA Group made during his time on the Board and does he have any regrets?

Thank you, Steven, and I'll keep it short but sweet. Look, I think the period that I have been on the Board has been one of great change for AMA. I joined prior to the Capital S.M.A.R.T acquisition. And through that acquisition, we've become a much larger operation. It was unfortunate that COVID came along when it did. But I think, importantly, with Carl joining the seat as the CEO, the organization is set up on a pathway of increased sophistication in terms of its operations. We have set down a pathway, which I think is importantly engaging with the insurers and ultimately the insurers policyholders as our customers and trying to differentiate ourselves as truly the industry leader and delivering the quality of service that people are going to struggle to deliver with us. I think the team across the management team has been strengthened significantly across the period and is a far more sophisticated group of senior executives, leading an organization which is really now at a point where it is fit for purpose for a company which is doing close to $1 billion in revenues. There are still days ahead, which we will need to work through. And these things are always one foot after the other. I think once the business has emerged with the first half results and the refinancing finished, we will be in a position where it will all be about the execution of the plan. And I think for all the shareholders here and as one of the significant shareholders, I feel very confident about the prospects of the business and that we are on the right path and that, that will start to be reflected in the results over the course of the next 12 to 18 months and possibly even sooner. But I thank everyone for the opportunity to be a Director of the company. It's been certainly not a straight line or an easy ride one which I think right now, we're well and truly on the right track. And it's with confidence that I leave the Board and my colleagues on the Board. And I think you're in good hands with them as directors of the company going forward.

There are no further questions.

There being no further questions, I will move to the next item of business. In accordance with the Corporations Act, resolution to adopt the remuneration report included in the 2023 annual report is required to be put to shareholders vote. The vote on this resolution is advisory only and nonbinding on the company. However, the directors recognize the outcome of the resolution as an indication of shareholder sentiment in relation to the 2023 remuneration report. I will now respond to any questions or comments in relation to this resolution. Alex, do you have any online questions or comments being received?

They have not been any.

Any questions from those attending in person? There being no further questions or comments, I will move to the next item of business. Resolution 2 relates to the election of Talbot Babineau, who retires in accordance with the company's constitution, and being eligible, has offered himself for election. The explanatory notes in the notice of meeting contains particulars of Talbot skills and experience, which I will not repeat here. However, I will now invite Talbot to speak to his reelection.

Good afternoon, shareholders, ladies and gentlemen. First, a short personal introduction. My corporate career spans 17 years. During that time, I have accumulated extensive experience investing in multiple sectors and jurisdictions. Of particular relevance for the 8 years I spent assessing and investing in collision repair, automotive retailing and automotive parts distribution in North America and the United Kingdom. This gave me detailed insights and knowledge of the operations of best-in-class businesses in each sector. For AMA Group, it translates to me contributing to matters such as site growth strategies, ancillary revenue opportunities, site performance optimization and company-wide remuneration structures. Since joining the Board, I have been able to share these insights with the group which in turn enables management to address and unlock opportunities for AMA Group's multiple business lines. My proximity to the world's largest multisite operators in collision repair is an asset, and my unique combination of capabilities are complementary to the skills by respected fellow directors. Of immediate value are my capabilities implementing transformative change in companies with unrealized potential. In addition, my capital allocation and capital markets experience is relevant as we manage AMA's balance sheet and develop a sustainable growth strategy. More broadly, my commercial risk management and negotiating experience can be drawn upon when dealing with high stakes matters. Over the last few years have been particularly challenging. AMA Group's unparalleled platform in the Australian marketplace remains intact. My commitment to realize AMA's group's full potential is unwavering, and I look forward to playing a role in our company's success. In closing, I value the support of our shareholders in my election and look forward to continued collaborative dialogue.

Thank you, Talbot. We will now respond to any questions or comments in relation to this resolution. Alex, do you have any online questions or comments being received?

There are no online questions or comments on this resolution.

I will now take comments or questions from those in attendance in person. Okay. There being no questions or comments, please see valid proxies received for this resolution on screen now. Moving along. Resolution 3 relates to the reelection of Kyle Loades, who retires in accordance with the company's constitution and being eligible, has offered himself for reelection. The explanatory notes in the notice of meeting contains particulars of Kyle's skills and experience, which I will not repeat here. However, I will now invite Kyle to speak to his reelection.

Thanks so much, Caroline, Chair, and good afternoon, all. Good to be here before you. I'm really privileged to stand before you to be considered for reelection to the Board of the AMA Group. I think that I bring 3 key attributes to the AMA Board. Firstly, aligned industry experience. I was very fortunate to have spent over 12 years on the NRMA Board. As you all know, the NRMA is Australia's largest motorist group over 2 million members, the equivalent of the RSAV here in Victoria. And that gives you great insights into the customer base, frankly, of the AMA Group. As part of that experience, I was on the Board of Thrifty Car rentals as well. Again, another variation of an allied business within the industry. Beyond that, I worked as an executive at motor -- multi-franchise dealership in the Hunter Valley, I am in a business start-up, built up and sold to a listed company in the motoring industry space. So I know enough about cars I think and the customers who drive cars to add value to this organization. My next attribute, I believe, is that I've had over 2 decades of significant Board experience on a multitude of organizations, but most recently in financial services which is highly regulated. In superannuation, I Chair Active Super, which is in the merger process at the moment with Vision Super here in Victoria and also as an NED of Great Southern Bank. And there are a lot of learnings at a governance level setting strategy budgets, change management, and I've been fortunate to play a role in those experiences. And finally, as Chair of the AMA People Committee, I've been very fortunate to have been in that role in the last year when Nicole Cook retired. There are 4 key issues that we want to continue to focus on. Firstly, remuneration. We have a remuneration philosophy and a framework review. And that whole objective is to attract, retain and reward great people. That's actually the objective here whilst at the same time, encouraging future business performance, both of those absolutely aligned with the best interest of shareholders. Secondly, talent, succession and leadership. We get that right pretty well, but there's so much more to do. We will ensure a robust talent and succession approach right across the whole group, which includes the identification and development of successes, Not just to the executive team but the whole leadership team. And if we get that right, we have a much more sustainable organization. Thirdly, our culture and engagement continue to be a major focus. We will continue to develop, communicate and embed spirit of engagement activities that will contribute to driving a traction and retention to reduce turnover and improve productivity. And lastly, diversity, equity and inclusion is so important to modern organizations. We will focus on improving in those areas. And what we do know is this, the more diverse organization that we have that indeed, every successful organization has, you'll have a much more successful business. That's my commitment to you as Chair of the AMA People Committee. As those that have spoken before me, it's been a tough few years and -- but I have to say I've been here for 2 years. I've actually thoroughly enjoyed that process, and I'm excited by the future. Thanks for considering me to be reelected to the Board of the AMA Group.

Thank you, Kyle. We will now respond to any questions or comments in relation to this resolution. Alex, any online questions or comments?

There are no online questions or comments in relation to this resolution.

So I'll now take comments -- questions or comments from those in attendance today.

We have just had one coming relating to this resolution, and that is from Mr. Steven Maine. There was a 15% vote against Kyle. Do we know which of our shareholders is casting protest votes today and what their concern is? Was it the dilutive structure of the capital raising?

Look, I think I will answer that by saying that 85%, I guess, have supported this resolution in favor of Kyle. It has been a challenging year. I do not know which shareholders necessarily have voted against this resolution. And I think that we have got a very -- a very promising set of priorities as we go forward and Kyle is a key part of that. So I would say that he has contributed extensively to the Board to date, and I expect that contribution to continue as we go forward.

There are no further online questions.

If there are no questions here, we are now moving to Resolution 4. Resolution 4 seeks approval for the ratification of the issue of 200,126,451 shares pursuant to the unconditional placement as announced to the ASX on 7 September 2023. I will now respond to any questions or comments in relation to this resolution. Alex, do you have any online questions or comments being received?

No, there have not been any received.

Any questions or comments from those in attendance, in person? There being no questions or comments, please see the valid proxies received for this resolution on screen right now. Resolutions 5, 6, and 7 seek approval for the issue of 34,104,456 shares to participating directors under the conditional placement. As the next item of relates to me, I will hand over to Talbot Babineau, our Deputy Chair, who will chair this resolution.

Thanks, Caroline. Resolution 5 seeks approval pursuant to ASX listing 10.11 for the issue of 1,286,821 shares to Caroline Waldron under the conditional placement. I will now respond to any questions or comments in relation to this resolution. Alex, have any online questions or comments being received?

No, there are no online questions for this resolution.

I'll now ask the floor if there are any questions in relation to this resolution. There being no further questions or comments, please see valid proxies received for this resolution on screen now. I'll now hand over to Caroline, who will resume as Chair of the meeting.

Resolution 6 seeks approval pursuant to listing -- pursuant to ASX Listing Rule 10.11. for the issue of 32,346,226 shares to Simon Moore under the conditional placement. I'll now respond to any questions or comments in relation to this resolution. Alex, have any online questions or comments being received?

No.

Are there any consent or comments from those attending here today? There being no questions or comments, please see the valid proxies received for this resolution on the screen now. Resolution 7 seeks approval pursuant to ASX Listing Rule 10.11 for the issue of 471,309 shares to Kyle Loades under the conditional placement. I will now respond to any questions or comments in relation to this resolution. Alex?

No, there are none.

I will take questions or comments from the floor. There being no questions or comments, please see valid proxies received for this resolution on screen now. Resolution 8 seeks approval by way of special resolution for the company to have the additional 10% placement capacity provided for ASX Listing on 7.1A to issue securities without shareholder approval. I will now respond to any questions or comments in relation to this resolution. Alex, any online questions or comments being received?

Yes, we have 1 question from Steven Maine. Having just raised $55 million, are we really looking at doing another placement, let alone potentially placing 25% of issued capital if this resolution is approved?

I'm just going to hand over to our Group CFO, Geoff Trumbull, to take that question. Thanks.

Thanks, Steven, for the question. Confirming no intent to raise any further equity at this time. We are seeking the additional 10% capacity to maintain flexibility.

Any other questions from the floor now? There being no questions or comments, please see valid proxies received for this resolution on screen now. Okay. That concludes, ladies and gentlemen, the formalities of the meeting today. If you have not already voted, please cast your votes now as the poll will close shortly. The results of the poll will be released on the ASX company announcements platform as soon as they're available this afternoon. On behalf of the Board, I would like to thank all our shareholders for your ongoing support of AMA Group and declare the poll and the 2023 Annual General Meeting closed. Thank you for attending our AGM.