The Reece Ltd (ASX: REH) share price has been chugging along since early June when the stock was trading at $39.52 to close on Thursday at $44.10, representing a gain of about 11%.
And the Reece share price gained 1.4% on Thursday's trade as the bathroom and plumbing company announced sales were up.
Sales for the first quarter increased by 8% on the previous year, according to Reece.
As a result, Reece expects net profit after tax for the period ending 31st December 2017 to be in excess of 8% above the previous year.
The latest announcement follows a solid run of increased sales and dividends over the past five years.
Reece's sales revenue has gone from about $1.5 billion in FY13 to around $2.4 billion for FY17, representing a compound annual growth rate of 12.2%.
The plumbing company, with a market cap of $4.33 billion, also reported an after tax profit of $212 million for FY17, up by a little over 10% on the previous year.
And Reece shareholders have enjoyed a steady increase in dividends over the past 5 years, with dividends going from 0.62 cents in FY13 to $1 for FY17.
The good news for Reece shareholders follows a year of expansion for the plumbing company, with 10 new locations added to its network.
"We have continued to invest in and grow the business and now have a network of 587 branches across Australia and New Zealand supported by 6 distribution centres," Chairman Leslie Alan Wilson told shareholders at the Reece AGM on Thursday.
Reece announced earlier this month that it had acquired Viadux, a distributer of water pipeline systems, from Crescent Capital Partners Management Pty Ltd.
Reece, largely a family-run business, has a lot going for it aside from its recent performance. It has a solid track record as a well-established brand that represents quality and is a market leader.
While companies such as Bunnings, owned by Wesfarmers Ltd (ASX: WES) and Tradelink, part of Fletcher Building Limited (NZE: FBU), may attempt to compete within that plumbing space, it will be difficult to dethrone Reece from its commanding position.
As such, Reece looks like a solid company.
