Plumbing products designer and manufacturer Reliance Worldwide has exceeded its prospectus forecasts, reporting a net profit of $65.6 million in its first full-year financial results.
Revenue of $601.7 million for the 12 months to June 30 was up 12.6 per cent on its pro forma results the previous year, while earnings (EBITDA) of $120.7 million was 21.8 per cent better than the pro forma $99.1 million.
Net sales grew 2.4 per cent on the prospectus forecast while net profit after tax rose 4.8 per cent.
Driving the positive result was a continued expansion of Reliance's SharkBite products business in North America which delivered strong sales growth in 2016/2017, mainly in the defensive repair, maintenance and renovation markets.
The Sharkbite business figures included a sales benefit in the second half from the initial rollout of product to approximately half of US company Lowe's more than 1,700 stores.
Reliance, which listed on the ASX in April 2016, said improvements in gross margin had continued, driven by cost reductions, procurement savings and operational efficiencies.
Chief executive Heath Sharp said the company performed well across all its geographic and market segments.
He said Reliance's growth in the year ahead would be helped by the company's new plumbing fittings products and efforts in commercialising the latest "Internet of Things" applications for water flow monitoring.
Reliance forecast earnings (EBITDA) for 2017/2018 of between $145 million and $150 million, driven by strong top-line growth from the expansion of its business in the Americas, the inclusion of results from its newly acquired Holdrite business and opportunities to gain market shared in Asian Pacific and Europe, the Middle East and Africa.
Reliance shares closed 30 cents, or 8.9 per cent, higher at $3.66.
RELIANCE EXCEEDS EXPECTATIONS:
* Net profit of $65.6m, vs $52.1m pro forma
* Revenue of $601.7m, vs $534.4m pro forma
* Dividend of 3cps, fully franked
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