Bathroom and kitchen ware supplier, GWA, today reported interim results which were arguably a bit pedestrian given the apparent strength is the residential construction market:
GWA Group Revenue was up just 2%, despite a price increase put through in October.
In the company's Bathrooms and Kitchens division (i.e., sanitaryware and tapware), Revenue was up 2.6%, despite a 3% price increase put through during the half. Also, GWA says it gained market share, implying market volumes contracted.
So this result from GWA points to a market that is slowing.
All-up from the GWA result is that the read-through for REH is not very positive in terms of the underlying market strength [*].
Hopefully the cycle downturn - when it happens - provides one of those rare opportunities to buy REH when it gets to a point of being under-valued.
[*] Then again, GWA is merely one piece of the construction industry jigsaw puzzle, so I'm not sure how much store of value to set by it.
REH Price at posting:
$9.70 Sentiment: None Disclosure: Held
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