Reliance Worldwide Corporation Ltd (ASX: RWC) has reported a full-year profit of $66 million on Monday morning.
The plumbing supplies giant says net profit for the 12 months to June 30 barely moved from last year’s $65.6 million, although that included $20.5 million of costs related to the $1.22 billion acquisition of John Guest.
Reliance says despite the flat profit, it is flagging greater-than-expected cost savings from this year’s purchase of a UK plastic fittings manufacturer.
Sales rose 27.8% to $769.4 million and Reliance says it now expects the integration of John Guest to result in more than $30 million in annual cost savings by the end of FY2020, compared to a previous estimate of $20 million.
The acquisition of the John Guest group was completed in June 2018.
CEO of Reliance, Heath Sharp, commented: “The acquisition of John Guest further expands our product range and our capabilities in manufacturing and innovation as well as extending our global footprint, particularly in Europe. We are excited with progress to date in integrating John Guest with RWC and the way in which the people in both organisations are working together.”
The company announced a final dividend of 3 cents per share, in line with FY17.
Reliance says it expects FY2019 EBITDA to be in the range of $280 million to $290 million, including $10 million of actual synergies expected to be realised in FY2019 and excluding $10 million of one-off integration costs expected to be incurred to achieve the synergies.
The Reliance Worldwide Corporation Ltd share price reached a 52-week high of $6.38 on Friday, before closing 0.48% lower at $6.18.
Since the beginning of 2018, Reliance Worldwide Corporation Ltd shares have gained 63.4%, compared to the S&P/ASX 200 Index which has gained 3% in the period.