Reliance lifts sales, flags cost savings
Shares in Reliance Worldwide have slid after the plumbing supplies giant reported a flat full-year profit of $66 million.
Reliance shares, which had almost doubled in value over the past year amid surging sales and global expansion, fell as much as 18.6 per cent in early trade to levels last seen three months ago, before recovering to sit 6.8 per cent lower at 1500 AEDT on Monday.
The ASX-listed firm said net profit for the 12 months to June 30 barely moved from last year's $65.6 million, although that did include $20.5 million of costs related to the $1.22 billion acquisition of UK plastic fittings manufacturer John Guest.
Sales, which included one month's contribution from John Guest, rose 27.8 per cent to $769.4 million.
Reliance said it now expects the integration of John Guest to result in more than $30 million in annual cost savings by the end of 2019/20, compared to a previous estimate of $20 million.
At 1500 AEDT, Reliance Worldwide shares were down 42 cents at $5.75.
That's still up 45 per cent this calendar year.
FY PROFIT WEIGHS ON RELIANCE
* Net Profit up 0.6pct to $65.99m
* Revenue up 27.9pct to 769.38m
* Ful-franked final dividend 3 cents/share, unchanged
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