http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.93Change: 0.00
R/$ = 12.67Change: -0.01
Au 1095.49 $/ozChange: 0.31
Pt 984.00 $/ozChange: 2.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 27, 2008

Electrical wholesaler ARB targets State-owned enterprises for growth

Back
 
 
 
 
 
 
Africa|CoAL|Eskom|Housing|Mining|Africa|Product|Products|Solutions|Infrastructure|Power
Africa|CoAL|Eskom|Housing|Mining|Africa|Products|Solutions|Infrastructure|Power
africa-company|coal|eskom|housing|mining|africa|product|products|solutions|infrastructure|power
© Reuse this



Increased government spend and Eskom infrastructure expenditure was expected to continue driving sales growth for JSE-listed electrical wholesaler ARB in the future.

The wholesaler, with CEO Craig Robertson at the helm, reported that despite the power crisis in South Africa, the electrification of rural areas would continue unabated, specifically the electrification of schools, clinics and low-cost housing.

Speaking at the group’s results presentation in Johannesburg, Robertson said that parastatals, some of which were already customers of ARB, would be a target focus for the future, as spending from these would become vast.

“We are positioned to take advantage of that spend,” he commented.

The company expected to benefit particularly from increased spend by Eskom as part of their rural reticulation programme of getting electricity to all by 2014.

Robertson explained that the electricity connections in KwaZulu-Natal and the Eastern Cape would double over the next 18 months to three years.

The electrification programme was also expected to start picking up pace in Limpopo province.

Further, government was investing R568-billion on infrastructure over a three-year period, which ARB said would benefit the company, as electricity was required for infrastructure developments.

Meanwhile, after its year-end in June, ARB had established ARB Global, which focused on exporting the group’s offerings into Africa.

“The whole of Africa has to be electrified, and those products will come from the strongest base in Africa, which is South Africa,” said Robertson.

He added that only a small capital investment was required to take advantage of the growth prospects of exports to Africa. He expected ARB Global to see a fivefold growth in revenue in the near term.

ARB was also expanding into Africa at a time when infrastructure developments were increasing on the continent.

In May, the wholesaler opened a branch in Nelspruit, in Mpumalanga province, which the company believed would allow it to enter the Mozambique market, which was part of the Maputo Development Corridor.

In addition, Nelspruit was also situated in the coal-mining Mpumalanga province, which would benefit the wholesaler’s new ARB Mining division.

This division was established after the company’s year-end and was a new focus for ARB.

“There is a global trend that mining houses are now adopting. They are using fewer and fewer suppliers,” commented Robertson.

He added that ARB could offer turnkey solutions to the mining industry with its product offering and the stock levels it kept. The division would especially take advantage of the opportunities in Southern Africa.

Meanwhile, the wholesaler would continue to look at acquisition opportunities, but would consider these carefully.

FINANCIAL RESULTS

ARB, which listed on the JSE in November last year, on Wednesday reported a 23,7% increase in headline earnings to R104,1-million for the year ended June 30, 2008, compared with R84,2-million the year before.

Headline earnings a share had increased by 11,8% to 47,1c a share for the year ended June 2008, compared with 42,1c a share in 2007.

Net profit for the year rose by 22,6% to R135,1-million, compared with R110,2-million the year before, while revenue jumped by 28,3% to R1,34-billion for 2008.


Edited by: Mariaan Webb
Creamer Media Senior Researcher and Deputy Editor Online
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
Embattled South African steel producer ArcelorMittal South Africa (AMSA) has offered insight into the “fair pricing model” it has tabled before government in return for tariff protection and a government stipulation that locally manufactured steel be designated for...
Telecommunications group Telkom on Friday said it had posted a 1.7% uptick in net revenue for the three months to June 30, on the back of a strong performance by mobile on data revenue and higher fixed-line subscription revenue. Mobile net revenue for the first three...
Dangote Cement revised its 2015 spending plans to $1-billion from the $700-million estimated nine months ago after it commissioned two new African plants this June, Nigeria's biggest listed company said on Friday. The company, majority owned by billionaire Aliko...
More
 
 
Recent Research Reports
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Road and Rail 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
Daimler truck test engineer Dirk Stranz pushes one button, and then retracts his hands from the steering wheel of the Mercedes-Benz Future Truck 2025. “And now the truck is driving itself.”
The statutory body responsible for skills development and support in the banking sector, BANKSETA, was investing R68-million in the capacity building project of the University of Venda (UniVen), announced Bankseta company secretary Caroline King at a media event in...
LIONEL MOYAL Cloud services providers must compete against other cloud services providers for business by providing up-to-date systems and services
Legacy information technology (IT) systems are becoming increasingly obsolete because of the maturity, efficiencies and cost effectiveness of cloud-based IT services, says information and communication technology major T-Systems subsidiary Intervate head Lionel...
ARMANDÉ KRUGER Balancing the collection and processing of data must be aligned to strategy
Many complementary services enable companies to derive broad value from data inside and outside them. The complexity of data management means that companies’ strategies determine the various data systems and functions they will use, says PBT Group regional sales...
The South African Civil Aviation Authority (SACAA) has announced that it had awarded the country’s first remotely piloted aircraft systems (RPAS) pilot’s licence. It was issued on Friday, July 10, to SACAA employee and qualified commercial pilot Nicole Swart,...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96