ARB Holdings is not a company that is top of mind among equity investors, even ardent small-cap followers. It’s a pity, as they are missing out on one of the market’s hidden little gems.ARB’s game is distribution of electrical products ranging from high-voltage cables and overhead line equipment to accessories and light fittings used in the building trade.It has not been an easy environment to operate in, particularly since Eskom turned off its rural electrification capex tap in early 2014. But this has not stopped ARB from producing impressive growth figures.Over the past five years the group has delivered average annual revenue growth of 14.6%, headline EPS (HEPS) growth of 14.3% and dividend growth of 21.9%.ARB topped this in its year to June, upping revenue 15.8% to R2.5bn and HEPS 15.4%.The dividend was lifted 10%, with a special dividend boosting the rise to 43%.Diversification has played a key role in ARB’s success."In 2008 we realised we had to change our business model to r...
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