Ann: Annual Report to shareholders-REH.AX, page-10

Nice result.

What struck me when I read the 2-page announcement was that the word 'customer' was used no less than 23 times across those few paragraphs. Tells me something about the intensity of focus on making dealing with Reece smooth and effortless ..... new app, refurbished stores, new products etc.

I'm no expert of this business, but do note that there has been a serious uplift in efficiency. The underlying profit in FY2016 (excl. property gains, fx movements and goodwill write-off) has risen $39.4m. Sales revenue rose by $191.2m. Therefore, some 20% of the incremental revenue went to the bottom line. (Overall typically 8% of revenue goes to the bottom line). Not sure if this is due to scale, staff productivity (training), product mix, innovation, logistic improvements ... ? But it is there for all to see.

The only blemish I can find is that operating cash flow could have been stronger if they cracked the whip a little more on debtors! Still plenty of free cash flow though, that's what we love most.