BET­TER THAN EX­PECTED

Finweek English Edition - - INVESTMENT -

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.

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