INTEGRATED
REPORT
2017

HIGHLIGHTS AND CHALLENGES

HEPS
3,6%
to 61,89 cents

(2016: 15,5% (59,74 cents))

Cash on hand
R306,6m

(2016: R243,3m)

Total comprehensive income for the year
8,5%

(2016: R162,6m)

Gross profit
8,4%

(2016: R548,1m)

NAV
382,53
cents

(2016: 351,14 cents)

Dividend per share
25,0
cents

(2016: 23,1 cents)

Special dividend
10,0
cents

(2016: 10,0 cents)

Cash on hand
Total comprehensive income for the year
Gross profit
NAV
Dividend per share
Special dividend
HEPS
Total comprehensive income for the year
Gross profit
NAV
Dividend per share
Special dividend
HEPS
Cash on hand
Gross profit
NAV
Dividend per share
Special dividend
HEPS
Cash on hand
Total comprehensive income for the year

 

GROUP AT A GLANCE

ARB Electrical Wholesalers
ARB Connect
ARB Global
Elektro Vroomen
CED

ARB Electrical Wholesalers is one of Southern Africa's largest distributors of electrical products.

Operates out of 22 branches across South Africa, with presence in all nine provinces.

Provides a wide range of internationally recognised and SABS approved products across three main categories: power and instrumentation cable, overhead line equipment and conductors, and general low-voltage products.

ARB Holdings holds a 100% interest in ARB Global and CED and a 74% interest in ARB Electrical Wholesalers, which in turn owns 100% of Elektro Vroomen.

Growth and expansion strategy

New branch openings and strategic acquisitions to further expand the branch network and enhance the proximity to market.

Product extension through the introduction of new products.

Eurolux
Cathay Lighting
Crabtree J.V.

Eurolux is a leading importer and distributor of energy-saving, LED, halogen and fluorescent lamps, light fittings, electrical accessories and ancillary products including fans and lighting components.

Operates out of two custom-designed distribution centres in Johannesburg and Cape Town and sells to retail chains, independent DIY and hardware chains, as well as to resellers such as specialised lighting shops and electrical wholesalers.

ARB Holdings holds a 60% interest in Eurolux, which in turn owns 100% of Cathay Lighting.

Growth and expansion strategy

Market share growth through securing additional customers.

Entering new markets through broadening the product offering.

ARB Holdings
ARB IT Solutions

ARB Holdings is an investment holding company for businesses involved in the trading and distribution of electrical, lighting and related products.

ARB’s property portfolio, which includes 14 properties valued at R188m, is housed under the Corporate Division.

The Corporate Division performs a centralised treasury function for the underlying operating subsidiaries and provides strategic leadership to the Group.

ARB Holdings holds a 100% interest in ARB IT Solutions, which provides the Group and other third party clients with specialist IT software and hardware services and support.

Growth and expansion strategy

Further diversification through the acquisition of trading and distribution businesses in related industrial/consumer products.

OUR PRESENCE

 

Eastern Cape
East London

Free State
Bloemfontein

Gauteng
Johannesburg (2)
Pretoria (6)
Midrand

KwaZulu-Natal
Durban (2)
Pietermaritzburg
Richards Bay

Limpopo
Polokwane

Mpumalanga
Nelspruit

Northern Cape
Kathu

North West
Rustenburg

Western Cape
Cape Town (2)

Western Cape
Cape Town

Gauteng
Johannesburg

KwaZulu-Natal
Durban

 

BUSINESS MODEL

 

A JOINT NOTE FROM OUR CHAIRMAN AND CEO

Alan R Burke
Non-Executive Chairman

Billy Neasham
Chief Executive Officer

DIVISIONAL REVIEWS

Blayne Burke
Chief Executive Officer

Peter Willig
Chief Executive Officer

EUROLUX HIGHLIGHTS

Pleasing growth in Crabtree joint venture

Range reviews done with major chain customers

6 500 SKUs ("Stock Keeping Units")

338 valid LOAs ("Letter of Authority") (to import)

2 356 customers invoice accounts

4 132 delivery addresses

R61,6m of brand management spend

16 700m2 Two distribution centres

ELECTRICAL WAREHOUSE HIGHLIGHTS

21 branches (four new ARB Connect branches) in nine provinces

Over 6 000 customers

Fleet of 149 vehicles

Level 2 B-BBEE

86 000m2 of warehousing, yard and sales offices (15 branch properties owned by ARB Holdings) – 650 employees

Over 20 000 products

70 completed learnerships

Corporate social spend totalling R1 534 941