he ARA Group has reported a 16 per cent increase in total revenue for the financial year, with its combined cleaning businesses, ARA Property Services, reporting revenue of $77 million.
Executive chair and managing director Edward Federman said ARA has reached a level of business maturity, whereby the multi-service business is well established.
“The 2019 financial year has been exceptional. This was our ninth year in a row of record sales and our fourth year in a row of record profits,” said Federman.
Earnings per share increased to $.42 per share, up from $.39 per share in 2018, while whole revenue grew at a compounded growth rate of 12 per cent over the past 10 years. The company reported 12 per cent organic growth in 2019.
“In short, ARA has been a growth company that also managed to deliver a strong yield to its shareholders whilst its level of financial leverage has been maintained at relatively low levels,” Federman said.
ARA entered the commercial cleaning sector two years ago following its acquisition of commercial cleaning business, CMC Property Services – its largest acquisition to date.
In 2018 ARA purchased its second cleaning business, Complex Solutions. In May 2019, ARA Group acquired Auckland-based building services business NEDA Facilities Services (NEDA).
The combined cleaning businesses, branded as ARA Property Services, reported revenue of $77 million for 2019.
According to the report the property services division’s operating margin was the best in the ARA Group in 2019, and was the second-best operating margin in 2018.
Customers of the property services division range from large commercial building owners and tenants, smaller second-tier office buildings, large private hospitals, smaller day surgeries and food processing facilities to nationwide offices of commercial services, private schools, airline lounges and selected retail outlets.
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