Ann: Half Year Accounts, page-14

With a Federal election around the corner, it will be interesting to see if Labor announce any initiatives to increase the level of housing stock, particularly expensive markets like Sydney. Any initiatives could be a boon for Reece.

On Morsco, you get the feeling from the half yearly that Reece management see a lot of latent potential in the business, but it’s not there yet. Terms like ‘innovation’, ‘digitalisation’ and ‘customer experience’ seem to be terms used solely in respect of Reece Aust / NZ....not Morsco. With Morsco, it more about ‘establishing new operating rhythms’ and ‘defining the visions and values’ of the business (My take: Reece management wasn’t keen on the old operating rhythms or visions and values, lol).

Plenty of upside if management can make the required changes to improve the Morsco business, and that’s before further organic growth of the Morsco branch network through organic growth and acquisition.