Shares in leading plumbing and bathroom products supplier Reece Australia Limited (ASX: REH) have soared to a new all-time high of $36.50 last week after announcing another set of record sales and profit figures.
Here are the highlights:
- Sales revenue increased 17.4% to $2.085 billion which included the benefit of 12 months' inclusion from the acquired Actrol Group
- Profit before tax and before unrealised gains on foreign exchange contracts jumped 23.3% to $227.9 million
- Net profit after tax soared 34.6% to $165.6 million and included $10.4 million unrealised gain on foreign currency contracts
- The board of directors declared dividends totalling 76 cents per share for the financial year, an increase of 12 cps on the prior year. A 52 cent final dividend is set to be paid on October 28, the stock will trade ex-dividend on October 6.
- Operationally, Reece Australia opened 14 new branches during the year and continued its existing store refurbishment program along with enhancements to its online experience.
The year ahead
The company benefitted from the strong level of building activity in financial year (FY) 2015 and management has stated that they "expect this momentum to continue into FY2016."
Reece has been a very solid long-term performer. This performance is evident by the group's impressive total shareholder return (TSR) over the past decade of 13.6% per annum. With a strong management team and further growth opportunities this stock remains a high-quality business that could deserve a place on your watch list.
