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RWC, RELIANCE WORLDWIDE CORPORATION LIMITED
nipper
post Posted: Feb 22 2021, 01:46 PM
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In Reply To: nipper's post @ Aug 26 2020, 02:33 PM

Highlights:
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 13% growth in reported Net Sales to $642.4 million over the prior corresponding period (pcp)
o Strong Americas performance with 22% constant currency sales growth
o Asia Pacific sales up 10% with a recovery in Australian new residential construction
o UK and Europe recovered strongly following COVID lockdowns, up 10% for the half in constant currency
 Strong cash generation ‐ cash flow from operating activities up 17% to $155.6 million
 Net debt reduced by $76 million and leverage down to 0.88 times Net Debt to EBITDA1 (from 1.57 times)
 Interim dividend of 6.0 cents per share declared, up 33% on pcp



Peter2 pointed out the recent freeze in Texas has resulted in many burst pipes. Off to the hardware store!!




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Aug 26 2020, 02:33 PM
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QUOTE
Resilient American householders more inclined to tackle a plumbing job rather than call in a plumber helped offset a sharp fall in sales in Europe for Reliance Worldwide Corp during Covid.

Chief executive Heath Sharp said there was still high volatility in the market after a partial rebound in sales in July/ August, but making predictions about customer behaviour in the UK and Europe, in particular, was fraught. But buoyant results out of Reliance's US market helped trigger a 17 per cent surge in the share price [following release of FY results].

The US makes up about 50 per cent of the plumbing supplier's overall business and the impact of COVID19 that market was in stark contrast to Europe, which comprises about 35 per cent of the operations.

In the June half, sales in the Americas region jumped 19 per cent as plumbers headed to hardware stores to stock up on items they were having trouble sourcing from wholesalers, while DIY enthusiasts also spent up as they had a go at home plumbing jobs themselves.

But in the UK and Europe, sales fell 20 per cent because of harder lockdowns by the British government and ''cultural'' and licensing issues, which mean professional plumbers are virtually the only avenue for repairs and renovations. There is more of a mindset in the United States to tackling those DIY projects, Mr Sharp said. While there had been some pent up demand in the UK, there was still major uncertainty. The UK business is not back to normal by any stretch, Mr Sharp said.

Orders were happening at the last minute in some cases, while some players appeared to be expanding stock levels of plumbing items in case there was a renewed wave of COVID-19 cases. Forecasting was almost impossible. Quite frankly, we just do not know, Mr Sharp said.

Net profit fell 33 per cent to $89.4 million, even though net sales revenue rose 5 per cent to $1.16 billion.

The company will on October 9 pay a final dividend of 2.5, which is half the payout a year ago.

Reliance is also scrutinising its global supply chain and Mr Sharp said the company would rely less on output from China in the future. There's a lot to be said for making close to the market, he said. We are looking globally at our supply chain and where we are making our products.

Reliance made a big bet on the UK market in May 2018 when it paid $1.2 billion to buy the John Guest business.

It makes plastic push to connect plumbing fittings, similar to the Sharkbite brass fittings range which has slowly been penetrating the US market as a younger generation of plumbers chase time savings and steer away from welding and soldering of traditional fittings. Mr Sharp said synergies from the John Guest acquisition were $31.3 million at June 30, and outside of the impacts of COVID19, that business had been seamlessly integrated.




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: May 13 2019, 11:13 AM
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QUOTE
Reliance Worldwide has downgraded its full year earnings forecast from between $280 million and $290 million down to between $260 million and $270 million. It also advises the increased tariff on Chinese goods will force it to raise prices in the US and consider manufacturing in the US or another country.

"As the second half of 2018-19 is progressing, each of Reliance Worldwide's operating segements is being affected by market-specific factors which are negatively impacting performance and results," the company says this morning.

One problem is not enough cold snaps in southern USA, where uninsulated pipes crack and need replacing. Another is its channel partners are carrying less inventory.

"Reliance Worldwide estimates the lack of a modest freeze event has reduced net sales by the order of $12 million to $15 million in 2018-19."

In the UK, Reliance's decision to stop selling Thermal Interface Units saw demand fall quicker than expected, which will see net sales come in up to $7 million lower than previously expected. And its Spanish business is selling fewer pipe and plastic fittings than expected, meaning full year sales will be up to $5 million lower than expected.

And in Australia a sharper than forecast decline in new home construction, particularly the multi-family segment, will see sales come in between $10 million and $15 million lower than expected.




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Feb 25 2019, 05:57 PM
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It's hard to think of plumbing supplies group Reliance Worldwide Corporation as a tech company, but as chief executive Heath Sharp points out, the push-to-connect plumbing products it launched into the market in 2004 are still a novelty for some set-in-their way plumbers.

A series of small operational issues weighed on Reliance's earnings in the first half – including issues commissioning a new equipment line in the US, and higher copper prices – and the stock was down 4.7 per cent on Monday.

But the result demonstrated how this business continues to build a strong global business on Australian-made technology.

Sales in the US rose 21.3 per cent and the company's push into Europe, where it bought British group John Guest in last year, is on track, with synergies of $30 million in annual synergies tipped by the end of the 2020 year. Sharp's team has been busy lifting the delivery times at John Guest, and he says customers are starting to notice.

The underlying message is similar to that of Appen: Locally-produced technology that, for its all its success, has still only achieved relatively small market-penetration in global markets.

Long term, its growth prospects look good...
..
https://www.afr.com/brand/chanticleer/globa...20190225-h1bom5



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
blacksheep
post Posted: Nov 24 2017, 02:05 PM
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In Reply To: blacksheep's post @ Nov 19 2017, 09:48 PM

First it was some of Macquarie's top stock pickers walking out the door.
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Now it appears some of their key positions are being offloaded.

Big lines of shares including Reliance Worldwide Corp, Link Group, Inghams and BlueScope changed hands in quick succession after lunch on Friday, for prices indicating someone in need of a quick sale.

The relatively thinly traded Link Group and Reliance Worldwide were particularly hard hit - both down about 5 per cent for the day on little if any company specific news.

Traders were quick to point to Macquarie Investment Management Ltd as the likely seller.


Read more: http://www.afr.com/street-talk#ixzz4zJoXqoJZ
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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Nov 19 2017, 09:48 PM
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In Reply To: blacksheep's post @ Aug 31 2017, 01:19 PM

Sohn Hearts & Minds 2017: The best ideas of the top investors
QUOTE
Blake Henricks, Macquarie Asset Management
Long Reliance (RWC:ASX)

One of Australia's top performing stock funds says there's 50 per cent upside to the manufacturer of sharkbite, which helps plumbers connect pipes.

Henricks says the market is pricing in the possibility that Reliance's top customer Home Depot will drop them after they sought to distribute their product through rival Lowes.

But he believes the probability is low given the popularity of the product which helps plumbers cut the time it takes to connect the pipes on a three bed room house from 6.5 hours (by soldering and crimping) to 1.5 hours.

Henricks says Reliance, which is over 100 years old, but developed the sharkbite product in 2004, can double its earnings over five years largely by increasing market share penetration.

That gives him confidence this plumbing company is the best growth stock in the Australian market.

"The plumbing industry has a problem and Reliance can solve it," Henricks says.

In the US, there are 500,000 plumbers but the average age is 58 years. In a decade there will only be 380,000 so we need innovative plumbing solutions such as sharkbite to make the few plumbers out there more efficient.


http://www.afr.com/markets/sohn-hearts--mi...20171116-gzmwcr


Read more: http://www.afr.com/markets/sohn-hearts--mi...r#ixzz4ysSPy7oT

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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 


blacksheep
post Posted: Aug 31 2017, 01:19 PM
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According to AFR - Macquarie nabs $368m Reliance block trade - and.......
QUOTE
Macquarie is offering the shares at an underwritten floor price of $3.50, representing an 8.4 per cent discount to the last close.
Bids are being accepted at three price points, being $3.50, $3.55 and $3.60.

Read more: http://www.afr.com/street-talk#ixzz4rIcZ0Dfn


QUOTE
31 August 2017 
Change of interests in Reliance Worldwide Corporation Limited 
Interests associated with Jonathan Munz, Chairman of Reliance Worldwide Corporation Limited (ASX: 
RWC) (RWC) have reduced their shareholding in RWC from 30% to 10%.  This was effected through an 
underwritten block trade of shares to Institutional investors. 

Mr.  Munz  complimented  the  RWC  Management  team,  led  by  CEO  Heath  Sharp,  on  RWC’s 
performance since listing and the operating results recently reported to the ASX. He also noted that 
RWC was poised for further growth with a number of exciting and innovative new products. 

Interests associated with Mr. Munz have retained a stake in RWC worth approximately $200 million 
(as at close of trading on 30 August 2017) and have committed to a voluntary escrow of this retained 
stake until 28 February 2018. 


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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
nipper
post Posted: Apr 3 2017, 12:17 PM
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QUOTE
The plumbing-products manufacturer, last year's largest IPO, has performed solidly since listing. Reliance designs, makes and supplies water-flow and control products used in plumbing.

Reliance's $2.50 issued shares peaked at $3.56 a few months after its April 2016 listing as investors bet on stronger US housing demand. The stock since has fallen to $2.85. Reliance's interim result slightly beat market expectations. Strong gains in the company's Americas division – the key to Reliance's fortunes – featured.

Bennelong has increased its Reliance stake to just over 9 per cent. "The company has good products and excellent distribution in the US through the two largest home-improvement chains (Home Depot and Lowes)," says Julian Beaumont, investment director at Bennelong Australian Equity Partners. "We expect Reliance to increase its US market share and grow its presence in other markets over time."

Beaumont says Reliance can cope better with cyclical housing downturns compared to other building-products manufacturers.
AFR



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
ShareScene.com
post Posted: Apr 3 2017, 12:03 PM
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Reliance Worldwide Corporation Aus P Ltd - RWC

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