http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.13Change: -0.06
R/$ = 11.56Change: 0.01
Au 1262.45 $/ozChange: 3.15
Pt 1228.50 $/ozChange: 11.00
 
 
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
 
Johannesburg|Natal|Africa|ARB|CoAL|Eskom|Housing|Mining|Africa|Mozambique|South Africa|Electrical Wholesaler|Product|Products|Solutions|Eastern Cape|Increased Government|Craig Robertson|Infrastructure|Power|Eastern Cape|Limpopo|Mpumalanga
|Africa|CoAL|Eskom|Housing|Mining|Africa||Products|Solutions|||Infrastructure|Power|
johannesburg|natal|africa-company|arb|coal|eskom|housing|mining|africa|mozambique|south-africa|electrical-wholesaler|product|products|solutions|eastern-cape|increased-government|craig-robertson|infrastructure|power|eastern-cape-province-or-state|limpopo|mpumalanga
© 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
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Video News
More
 
 
Latest News
SAA acting CEO Nico Bezuidenhout, Finance Minister Nhlanhla Nene and SAA chairperson Dudu Myeni
Finance Minister Nhlanhla Nene has assured that loss-making national carrier South African Airlines (SAA) will not receive another bailout from government, noting that the most recent R6.4-billion government guarantee had only been provided in support of an intensive...
South Africa's cumulative trade deficit was R95.3-billion in 2014, the South African Revenue Service (Sars) said on Friday. In 2013, it was R71.4-billion, Sars said in a statement.
Certain regulatory approvals remain outstanding in Telkom’s proposed R2.67-billion takeover of JSE-listed Business Connexion (BCX), the parties said in an update to shareholders on Friday. BCX noted in the statement that the Competition Authority of Botswana had...
More
 
 
Recent Research Reports
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
 
 
 
 
 
This Week's Magazine
The international Square Kilometre Array (SKA) radio telescope – which is to be jointly hosted by South Africa and Australia with, later, outstations in other countries – may not yet exist, but international scientific working groups are already deciding what...
A free Web-based solar power plant capacity-planning tool offers project planners and developers, as well as governments, a means to assess the solar energy potential of thin-film solar PV power over an area of land. The tool was developed by thin-film solar...
As yet, no specific methodology, timeline or costs have been finalised to remedy the water ingress, excessive to contractual specifications, into the Gautrain tunnel between emergency shaft two (E2) and Park Station, says Bombela Concession Company technical and...
ASTRAPAK The group highlighted that executive strategic interventions and other group-wide business improvement imperatives were progressing favourably
The “seriously disruptive” electricity outages in South Africa have cost packaging group Astrapak more than R2-million in “irrecoverable downtime costs”, the company said on Monday, adding that the power cuts were negating some of the benefit of energy saving...
Bakkies and more affordable cars dominated South Africa’s new vehicle market in 2014. Unaudited data from the Department of Trade and Industry (DTI) shows that South Africa’s most popular vehicle in 2014 was the Toyota Hilux, selling 37 562 units.
 
 
 
 
 
 
 
 
 
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