With the little information that exists in the public domain, I some months back attempted to build a crude financial model for Viadux.
I concluded that Viadux was highly unlikely to have been a profitable business (even at the EBITDA level) when Reece acquired it and that it's Gross Profit might have been around $20m or $25m, possibly.
This result appears to bear that out, to some degree, given Reece's Gross Profit rose by 11.2% in DH2017, compared to EBITDA growth of just 10%; and if one strips out Viadux's theoretical $25m Gross Profit, (on a pro rated basis given Reece only took ownership at the start of October 2017), from Reece's DH2017 Gross Profit figure, the underlying growth in Gross Profit would be 9.6%.
So, I think it safe to say that Viadux made no contribution to Reece's Operating Profits in the period; in fact, I strongly suspect there was a couple of percentage point drag on Group EBIT.
Now that we can see what it looks like they paid for Viadux, it works out to a Price to Gross Profit (trailing) of around 1.5x, which is not at all bad. However, I think it is quite irrelevant, anyway, because I suspect that in 5 year's time Viadux will be generating Sales close to $200m, Gross Profits of $50m, and EBITDA close to $20m.
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Last
$26.61 |
Change
-0.200(0.75%) |
Mkt cap ! $17.18B |
Open | High | Low | Value | Volume |
$26.34 | $26.90 | $26.34 | $8.562M | 321.4K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 1112 | $26.60 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$26.82 | 1112 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 1112 | 26.600 |
1 | 1049 | 26.590 |
1 | 800 | 26.580 |
1 | 880 | 26.570 |
1 | 37 | 26.400 |
Price($) | Vol. | No. |
---|---|---|
26.820 | 1112 | 2 |
26.840 | 1112 | 1 |
26.870 | 1112 | 1 |
26.890 | 1112 | 1 |
26.910 | 78 | 1 |
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