Reliance (RWC) shares get currency boost
Reliance Worldwide (RWC) +5.76%; Plumbing parts manufacturer Reliance saw its shares rally today on an in line result. The company met the guidance they downgraded to in May on the back of a softer than expected American winter however some were questioning the quality of the result given the reasonable currency benefit the company received. The profit line was 80% higher than FY18, however this was mostly made up of the full year contribution of UK based John Guest. The integration of the acquisition is ahead of schedule, and synergy benefits were upgraded at the result by 50% to exceed $30m p.a.. Guidance for Reliance was mixed – NPAT guidance for FY20 was $150m-$165m, around 5% below consensus. EBITDA guidance, however, was marginally above the markets expectations of $284m.
Reliance Worldwide (RWC) Chart
