Yes my it was my first REH AGM. I spent a lot of time going over...

Yes my it was my first REH AGM. I spent a lot of time going over several years of REH accounts before making my purchase (just this morning).

So yes, I'm aware of the recent flat revenues and earnings. I also think there is a risk of a structural shift in required maintenance capex (ahead of current depreciation rates).

I suspect no market share has been won in recent years (unlike, say, Bunnings). But then, being a premium distributor, the several years that we've had of depressed building activity probably did not play into its strength (perhaps).

On balance, I'm impressed by the determination to keep investing in their moat, despite the sluggish conditions. I'm willing to read this as a demonstration of fortitude.

A number of years of depressed conditions combined with high capex have no doubt compressed margins. When the situation reverses, operating leverage should be quite pronounced (as it is already demonstrating).