REH 1.30% $26.58 reece limited

Seems pretty limited information here: -Sales > $100M - 1400...

  1. 219 Posts.
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    Seems pretty limited information here:
    -Sales > $100M
    - 1400 customers
    - 100 staff and total 9 locations
    - Found a update document from Viadux which referenced that they had to delay their implementation of ERP for 6 months as they were not ready - though perhaps this is not unusual for ERP implementations.
    - It also mentioned that the CEO had worked over the last two years "trying to make the business profitable." It did not mention if that has happened as yet or give specifics on revenue growth, capex, margin, etc.
    - Interestingly it appears that they have raised their prices in Oct of 2016, April of 2017 and Oct 2017. The increases vary however it would appear that they may have raised prices by 15 - 25% in total. So maybe they have some pricing discipline and at least try to cover the AUD movements if not try to capture some incremental margin.
    - Lastly they announced that the transaction is "not material" under ASX rules so if anyone knows where materiality starts for the ASX perhaps that is the upper limit of what they payed?
    - For me at least hard to calculate the real value of a business coming out from under a PE - is it hollowed out, extended period of underinvestment and possibly lower staff loyalty?
    - Perhaps REH discipline, culture and scale may be a good fit.
    - Is it possible Crescent could not get the results, profit is small or negative and REH got a good deal?

    http://www.businessreviewaustralia.com/company/449/brochure/12486797/52947389

    Some of the info was from their site under "about us" , "news and market notices".
 
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