BETTER THAN EXPECTED
ARB Holdings published a betterthan- expected set of results as it continued to show how a company should be run. When I first interviewed the company’s CEO Byron Nichles some five years ago, it had about R350m cash and a market cap of less than double that. The risk was that the cash would disappear but the compay has very carefully used the money and still has over R100m cash and a totally ungeared balance sheet. With over 6 000 customers for its electrical division, no customer is larger than 5% of revenue, meaning that there is no customer risk and that the move into lighting has worked very well with Eurolux. The company plans to add another leg or two to stand on but in related fields, taking the same cautious approach that it used when it spent the first part of its cash pile.