"Given the strongly cash-generative nature of ARB‚ the annual dividend has been increased by 18% to 16.2c a share and a special dividend of 10c a share was declared‚ to return excess cash to shareholders while still being able to retain sufficient cash to fund growth and expansion‚" chief executive Byron Nichles said.
The group‚ which released annual results on Thursday (15 August)‚ reported an overall increase in revenue of 24% to R1.94bn‚ mainly due to a strong trading performance by its lighting division‚ as well as the acquisitions of Industrial Cable Suppliers (ICS) and Elektro Vroomen.
The gross profit margin for the period increased from 19.6% to 21.9%‚ because of the higher-margin lighting division being included for the full year's results. ARB increased operating profit by 26% to R160m.
Headline earnings per share for the year fell 15% to 39.55c.
"Despite an increasingly competitive market and uncertain macroeconomic environment‚ the group was able to achieve double-digit top- and bottom-line growth throughout the year. The board is pleased with the overall results‚" Nichles said.
Revenue in the electrical division rose 16% to R1.68bn‚ boosted by the acquisitions of ICS and Elektro Vroomen.
Operating profit increased by a more modest 5% as restructuring and integration costs meant the profit contributions from ICS and Elektro Vroomen were lower than expected.
The lighting division reported revenue of R281m and operating profit of R30.5m‚ ascribed primarily to a combination of strong gains in market share‚ a focus on margin improvement and strict cost controls.
No comparative numbers are provided as the division formed part of ARB only for the second half of the 2012 financial year.
The group expects trading conditions to remain tough during the new financial year‚ with low levels of construction spending‚ continued labour action and declining commodity prices affecting the mining and public sectors.
However‚ it said the electrical division was well placed to benefit from any recovery in of these sectors.
It also expected top- and bottom-line growth in the lighting division‚ increased pressure on consumer spending notwithstanding‚ as the division expands its product range to include electrical accessories as well as commercial and project lighting.
"In line with our growth and expansion strategy and with an ungeared balance sheet and significant cash resources‚ ARB will continue to pursue further strategically aligned acquisitions to expand the business and its product offering‚" Nichles said.
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