Business Description:
Reece Australia Limited (REH) is a supplier of bathroom and plumbing products with over 440 trading outlets throughout Australia and New Zealand. REH operates in Bathroom Life showrooms and caters for more specialised industries through Irrigation, hvac-r and Civil businesses as well Onsite which services commercial plumbers and volume home builders.

Strategy Analysis:
REH commenced trading from 13 new outlets during 1H10 and closed 9 existing outlets, bringing the total trading locations to 433. REH's rate of store openings is expected to be somewhat subdued during challenging economic conditions. As the plumbing industry has become more specialised, Reece has expanded into the allied areas of HVAC-R, Industrial, Irrigation and Civil. Reece has built a presence in these areas focusing on quality products and exceptional service. A key part of REH's strategy is to focus on customer service and continuous improvement. REH's Continuous Improvement Program (TQM) encourages staff to review and develop processes that increase efficiency and improve quality across the organization. Reece Australia reported NPAT up 3.8% to $118.61m for the year ended 30 June 2011. Revenues from ordinary activities were $1.56bn, up 4% from last year. Basic and Diluted EPS were 119 cents compared to 115 cents last year. Net operating cash flow was $135.83m compared to $190.02m last year. The final dividend declared was 40 cents, taking the full year dividend to 61 cents compared with 58 cents last year.