Reece (ASX: REH)

Reece (ASX: REH) Supplies plumbing and bathroom products

1920

FOUNDED

MEDIUM

SIZE

CAPITAL GOODS

Industry

Product / Service

  • Reece Group is made up of three core businesses:

    • Reece – plumbing & bathroom products.  Reece specialty businesses can be broken down further into:

      • Plumbing & Bathroom – Australia’s largest supplier of plumbing products through 450 showrooms around Australia

      • Irrigation – irrigation and related water management products for the landscaping, agriculture and pool building industries

      • Onsite – wholesale range of products targeted at volume builders.  Products include kitchen appliances, hot water systems, heating systems, bathroom products, tapware, locks and insulation

      • Civil – includes a range underground piping, telecommunications and electrical products

      • Heating, Ventilation, Air Conditioning + Refrigeration products – products include copper & insulation, compressors & condensing units, evaporators, pressure temperature controls and more

    • Actrol – supplies components, units, systems and refrigerant gases to the Australian heating, ventilation, air conditioning and refrigeration industry.   With 60 branches around Australia, Actrol was acquired in 2014

    • Metaflex – wholesaler and manufacturer of air conditioners, heating systems and related products.  Metaflex also designs, produces and customises systems for clients

  • The Wilson Family are heavily involved in Reece with four family members on the board, including the Executive Chairman and CEO

History

  • In 1920, Harold Reece opened a plumbing hardware store in Caulfield, Victoria

  • Reece listed on the ASX in 1954

  • In 1969, the Wilson Family began their involvement in Reece and started expanding stores throughout Eastern Victoria and into Albury, NSW in the 1970s

  • A national expansion began in 1997 with stores opening in South Australia, Western Australia and the Northern Territory

  • Click here for a detailed step through Reece’s history

Customers

  • Reece’s customers range from consumers, plumbers and other tradesmen, builders, property developers and councils & utilities providers for the supply of water mains, gas mains and other similar infrastructure

Operations

  • The company is headquartered in Burwood, Victoria

  • The company’s operations are in over 570 stores around Australia and New Zealand.  Reece also operates a retail e-commerce platform

To improve the lives of our customers and our people by striving for greatness every day

Profitability Table

Year Revenue ($m) % change EBIT ($m) % change
FY 2010 1,503   162  
FY 2011 1,564 4.1 176 8.9
FY 2012 1,519 (2.9) 165 (6.3)
FY 2013 1,345 (11.5) 164 (1.0)
FY 2014 1,776 32.0 189 15.7
FY 2015 2,085 17.4 237 25.4
FY 2016 2,292 9.9 280 18.0

Fun Facts

  • Peter Wilson’s (CEO) total remuneration for FY 2016 was $4.0m

  • Reece sells more than 350,000 metres of piping every week

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