Reliance Worldwide Corporation (ASX: $RWC) Interim Financial Report for 31 December 2023

Reliance Worldwide Corporation Limited (ASX: $RWC) has released its interim financial report for the six months ended 31 December 2023. The report shows a weighted average earnings per share (basic) of US6.5 cents, down from US8.5 cents in 2022. The net tangible assets per share at 31 December 2023 were US$0.19, up from US$0.16 at 30 June 2023.

Executive Commentary on Financial Performance

The reported earnings per share for the six months ended 31 December 2023 reflect a decrease compared to the same period in 2022. Adjusted earnings per share remained steady at US8.6 cents. The Company's dividend policy has been revised to distribute between 40% and 60% of annual net profit after tax, with a shift towards unfranked or partly franked dividends due to changes in the geographic business composition. The Board has resolved to declare a total distribution amount for the half year ended 31 December 2023 of US4.5 cents per share, comprising an unfranked interim cash dividend of US2.25 cents per share and an on-market share buy-back for US$17.8 million.

Summary of Interim Financial Report and Future Plans

Reliance Worldwide Corporation's interim financial report for the six months ended 31 December 2023 reflects a decrease in basic earnings per share compared to the prior period. The Company's dividend policy has been revised to include a cash dividend component and an on-market share buy-back component, with the total distribution amount for a period to be allocated approximately 50% to a cash dividend and 50% to on-market share buy-backs. The Company has also announced an agreement to acquire the Holman Industries business for A$160 million (US$105 million) and expects to complete the acquisition in March 2024.