Ann: Appendix 4E, Annual Report and Financial Statements-ARB.AX, page-2

ARB produced another relatively clean flat result.

Considering the following:
- Weak demand from mining industry
- Insufficient fitting capacity in Australia
- Weaker export orders in the second half from customers in economies dependent on oil & gas exports
- Unusually high number of new vehicle releases in Australia, which made it impractical for ARB to supply its accessories in a timely manner

ARB's results is actually quite commendable.

Investments for the future:
- Opening another 3-4 stores in Australia in FY2017
- Addressing capacity issues in Victoria & WA warehouses
- A new sales & distribution centre in Dubai to service Middle East region
- Purchase of a further 55,000 square metres of land in the same industrial estate as current operations in Thailand

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Other observations:
- Free cash flows is still very healthy
- Net cash balance is growing again

One negative observation:
- Stock turnover is deteriorating again (5 years in a row now, from 2.94 in 2011 to 1.94 in 2016). Hopefully, this will start to reverse once the new warehouses in Florida, Czech Republic, and Dubai have settled down and operate efficiently.


Considering all of the above, I'm neither super excited about this result nor worried about my investment in ARB. Hence, I will just continue to hold.