Will Reliance Worldwide benefit from the US freeze?
Reliance Worldwide (ASX:RWC), is a global provider of water control systems and plumbing solutions. The company sells innovative plumbing fixtures to enhance productivity and efficiency for end users including plumbers and home handymen. Reliance’s core product is the “Push-to-Connect” (PTC) fitting to connect two ends of a copper pipe, marketed under the Sharkbite brand.
This week Reliance released the outcome of operating for the first half of the 2021 financial year noting the US is almost three quarters covered in snow – the significance of which will be explained momentarily.
Reliance Worldwide reported underlying EBITDA of $166 million. This was within the range articulated by the company of $164-167 million in its trading update on 26 January. Net profit after tax of $99.3 million was also in line with consensus expectations. A six cent per share dividend was a cent higher than we had expected.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
