“Everything you can image is real” – Pablo Picasso
We have now completed our 23rd year of operations as the ARA Group. It has been an extraordinary journey for our employees and our shareholders and for the work we have done for our customers.
I love the quote by Pablo Picasso “Everything you can imagine is real.” It would not be honest of me to say I dreamt I could be on a team that started with a blank piece of paper and 23 years later helped to build a business of ARA’s magnitude. ARA is now doing close to $1 billion worth of business. ARA has been profitable for every one of those 23 years. And, best of all, ARA has more than 400 employees owning the company for whom they work.
I acknowledge I dreamt of what we have accomplished, but where we are today as a company is beyond my initial dreams. I did imagine we could create a great company with creative ideas and focus on executing well and bringing that creativity to life.
As I consider the last financial year, and the past 23 years of the ARA Group, I think of the consistency of the Group and the creativity used to develop and grow this company. As long as we all work together, focus on our jobs, do our best for our customers and each other, we will be Here for You. Here for Good.
Operating results
Financial year 2024 has been a solid year of operating results. Both revenue and EBITDA increased from the prior year. Revenue grew 9% from $885 million to $969 million. EBITDA grew 12% from $67 million to $75 million. 2024 represented the ninth year in a row of record EBITDA results. The prospects are strong for ongoing growth as the backlog of confirmed orders on 30 June 2024 was $438 million, up from $421 million one year ago. Organic growth in 2024 was 2% whilst the growth from acquisitions was 7%.
Acquisitions
We completed eight acquisitions during the 2024 financial year. The following is a summary of the businesses, services and products acquired.
- Fire protection business in central New South Wales
- Insurance building and repair business in Sydney
- Fire product distribution and pipe fabrication business in Sydney
- Electrical test and tag service business on the east coast of Australia
- Commercial and industrial sign design, fabrication and installation business in New Zealand
- Insurance building and repair business south of Sydney
- Safety equipment distribution business in Melbourne
- Fire product distribution business in Perth
Our People
I want to thank my esteemed teammates of the ARA Senior Management Team. One of the most significant competitive differentiators of the ARA Group compared to our competitors is the consistency of the composition of the ARA Senior Management Team.
Most importantly, thank you to all the ARA workforce. Your dedication to your job and the work you do for our customers is what sustains the ARA Group. You are truly valued, and ARA would not be in the strong position we find ourselves without all of you.
Note: All amounts contained in this letter are before the application of AASB16 Leases.