@madamswer By looking at Note 21. Business combinations, we can...

@madamswer

By looking at Note 21. Business combinations, we can understand why the Chairman in its annual Chairman's Statement always include this statement year in year out:

The strong financial position of the Company ensures that ARB can react quickly to appropriate opportunities, including further capital projects or suitable acquisitions.

In 2016, ARB paid a total of $2.431m to purchase 3 businesses, which in turn contributed $1.433m NPAT for the year.

In 2015, ARB paid a total of $2.619m to purchase 2 businesses, which in turn contributed $0.493m NPAT for the year.

Please note that some of the acquired businesses were in ARB's hands for less than 12 months, therefore the NPAT contribution is understated.

Now, if you can find this kind of returns in the outside world, please be generous enough to share it with me, because I want to know and join the party if possible!

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As I have said in my previous posts, ARB is the natural buyer of these ARB franchisees when the current operators have had enough of running a small business and want to cash in and enjoy their retirements.

In addition, ARB is also the natural buyer of various niche players in the 4WD accessories market. Once ARB buys them, it can easily expand the marketing reach of the product. The selling price can also be easily raised simply by rebranding it as ARB goods.