Australia's AMA Group gains on revising pricing terms with largest customer

Ama

04/11/2022 24:08

** Shares of AMA Group Ltd  AMA.AX  rise as much as 14% to
A$0.245, set for best day since Oct 27, if gains hold
    ** The automotive accessories co says it reached an
agreement with its largest customer Suncorp Group  SUN.AX  with
respect to the pricing for services provided by vehicle repair
business Capital S.M.A.R.T to Suncorp  urn:newsml:reuters.com:*:nASXjY9DL
    ** Agreement valid from Oct. 1 until June 30, 2023 
    ** Co adds updated pricing reflects accounts for inflation
and provides incentives to expand capacity within Capital
S.M.A.R.T
    ** Suncorp sold Capital S.M.A.R.T to AMA Group in 2019 to
focus on its core insurance and banking operations 
    ** Separately, AMA reaffirmed its FY23 earnings forecast 
    ** AMA stock down 50% this year, as of last close
 (Reporting by Jaskiran Singh in Bengaluru)
 ((Jaskiran.Singh@thomsonreuters.com;))