Ann: Half Year Report and Accounts, page-2

Another "steady as she goes" set of results from REH.

Another $25m of borrowings was repaid in H1 2017. With the second half traditionally being a stronger half for generating operating cashflow, REH is on track to be debt free by the end of the FY2017.

Reece is in the process of installing solar panels on the roof of its owned properties. The result so far is about 30-40% reduction in electricity usage. So far, the solar panels have been installed in approximately 35 sites. I believe Reece has the goal of installing solar panels on every site that it owns.

With electricity price continuing to rise, this capital project will partly insulate Reece from future rises in the electricity prices. Just like the strategy of owning its own properties, this investment is sure to become a gift that keeps giving.

The past few years have seen Reece investing in its network of distribution centres. With five relatively new DCs now ready to support its next growth phase, I look forward to reading future reports about aggressive network expansion, especially the Actrol stores network.

With the value of land & buildings sitting at $371m on 30/06/2016, REH is on track to break the $400m mark this financial year.

Two more results to go and I'm done for this reporting season.