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12:01
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Originally posted by alnby
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I spent some time reading through the recent Results Commentary from ARB and couldn't help but be even more impressed by the management of this company then I was when I became a share holder a few years back. I came away from reading it believing their biggest issue is keeping up with demand. What a problem to have! Annual sales revenue has grown at an average compound rate of 10.4% over the past 10 years. Further capacity being looked at .Product development and manufacturing teams still catching up. Busy in both Australia and Thailand plants over the year. To provide for future global warehousing and manufacturing space we have agreed to purchase a further 55,000 sq metres of land in the same estate we currently occupy in Thailand. This land will allow for duty free zoned warehousing and distribution to be conducted. Strong cash flow. No debt and cash balance of $13.8 million. All companies should be run as well as ARB. I'm well aware that there is nothing new in the information I have posted here. Basically I couldn't help myself after having read the commentary.
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Management are clearly placing a lot of faith on global expansion. On the one hand, this is a management who's faith has earned the right to be taken seriously (quite a rarity). On the other hand, I have to ask myself, how will profitable growth occur in markets where the brand has minimal resonance? Secondly, how will that resonance be achieved in cultures that are very different, especially wrt attitudes to 4WD'S?hold .
(20min delay)