Plumbing products maker Reliance Worldwide has given a bullish outlook for its business, saying trading conditions so far this financial year have remained strong.
The company remains on track to realise its full-year earnings guidance of between $145 million and $150 million that it outlined in August, chief executive Heath Sharp says.
"We project strong top-line growth driven by ongoing expansion of the push-to-connect business in the Americas, inclusion of a full year of Holdrite results, and targeted opportunities to gain market share across new platforms," he told the company's annual general meeting on Monday.
Reliance, which listed on the ASX in April 2016, in August reported a 21.8 per cent improvement in earnings to $120.7 million for 2016/17.
The business has grown on the back of strong demand for its flagship SharkBite fittings in the North American market as well as the recently acquired Holdrite business.
Mr Sharp, though, on Monday warned about the impact of the rising prices of copper, which is a key raw material for its brass plumbing fittings.
"I do note that current copper prices are relatively higher than originally anticipated, although offsets in other parts of the business should allow us to absorb this additional cost," he said.
"If the price remains high or moves higher, then we would expect a move on pricing across the market," he added.
The price of copper has risen dramatically in recent months on strong demand from top consumer China and have lifted nearly a fifth over the past six months.
By 1213 AEDT, Reliance Worldwide share were up 1.1 per cent at $3.70 in a firm Australian market.
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