FBU-Fletcher Building

[BlackPeter]

Fletcher at an operating level is in disarray - no co-ordination from head office or the board, one operating division not talking to another, and staff getting desperate as redundancies loom due to lack of work.

I could give an excellent example of that happening but that could reveal my contact so will just write that it is alarming that a company can be so directionless and stuck in the mire.

Something better happen soon as FBU is too important a company to the NZ  building industry to drift like this.

Too big to fail? Lets hope its no Titanic ...

[snapiti]

huge red flags here, Oliver Mander right on the money and must listen to investors

https://www.rnz.co.nz/national/programmes/ninetonoon/audio/2018946191/mark-cairns-pulls-out-of-farcical-process-for-fletcher-building-chair

board obviously looking for replacement that will align with their thinking, remind me again what that has done to the SP
As Oliver alludes to, 3 months in and the board finding it hard to find anyone of quality that will go along with their way of thinking

[snapiti]

Just how bad are the 2nd 1/2 numbers gonna be, IMO current price of $3.15 will look expensive in 5 weeks time

[kiwi2007]

https://www.nzherald.co.nz/business/fletcher-building-sells-its-tradelink-for-a170m-a10m-deferred-for-about-two-years/VYKXJX2RXNDAPEVL6SQFPLAFUQ/

Fletcher Building has sold Australian plumbing supplies and distribution business Tradelink for A$170 million (NZ$186m) and says it will use that to repay debt.

Fletcher will get A$160m cash payable on the settlement at the end of next month.

Fletcher will use the money to repay debt.

"The sale will enable us to concentrate our efforts on the performance and growth of Fletcher Building's core businesses."

Fletcher's annual result is due out next week.

[Basil]

"Loved" this bit

"The sale will enable us to concentrate our efforts on the performance and growth of Fletcher Building's core businesses."

Growth, lol.  FBU has been a pure cyclical business for decades.  There's no growth here and there never has been any.
I didn't even bother asking Matt Peek at Kingfish if FBU was on their radar as I know the answer would be no from previous comments at prior year ASM's.

[winner (n)]

True to form with Fletchers there will be best part of $100m abnormals related to this deal

Non cash so all OK

[Basil]

When is an abnormal item just run of the mill everyday normal ?  A. When Fletchers is involved lol

[Shareguy]

So they sold it for A$170m. Which will probably turn out to be A$160m.  Less A$10m transaction costs and Less A$20M separation costs. Less impairment of A$32m Less NZ$54M in "derecognition of the Foreign Currency"

These guys are on fire and the directors no doubt will end up in the "business hall of fame."

It begs the question, how many other FB operations are over inflated on the books.

Then there's Iplex and the leaks...............

[Crackity]

So they sold it for A$170m. Which will probably turn out to be A$160m.  Less A$10m transaction costs and Less A$20M separation costs. Less impairment of A$32m Less NZ$54M in "derecognition of the Foreign Currency"

These guys are on fire and the directors no doubt will end up in the "business hall of fame."

It begs the question, how many other FB operations are over inflated on the books.

Then there's Iplex and the leaks...............

Feb 2024 it was written down in their accounts - what a mess


Fletcher Building CEO Ross Taylor said one of the factors behind the loss was Tradelink, with "disappointing results" from the subsidiary leading Fletcher to write down the value of the plumbing supplier by NZ$122 million (A$115 million) and put the business up for sale.

[winner (n)]

Feb 2024 it was written down in their accounts - what a mess


Fletcher Building CEO Ross Taylor said one of the factors behind the loss was Tradelink, with "disappointing results" from the subsidiary leading Fletcher to write down the value of the plumbing supplier by NZ$122 million (A$115 million) and put the business up for sale.

So at end of day it was a 50% off sale

[Teitei]

So at end of day it was a 50% off sale

The usual FBU saga from way back to Hugh Fletcher days - NZ makes the money and the CEOs & Boards squander the money on ill-fated overseas acquisitions.

Anyone able to think of one single overseas acquisition which has worked for FBU?

[Basil]

The usual FBU saga from way back to Hugh Fletcher days - NZ makes the money and the CEOs & Boards squander the money on ill-fated overseas acquisitions.

Anyone able to think of one single overseas acquisition which has worked for FBU?

https://www.youtube.com/watch?v=PlntBAK8VA8

[Red Baron]

These guys are on fire and the directors no doubt will end up in the "business hall of fame."

Vhen I skim read zhis I read

"These guys are on fire and the directors no doubt will end up in the "business hall of flame."

I thought NZ does not have a "business hall of flame". Zhen I vondered vhy not?  Zhere seem to be plenty of good candidates!

RB

[Toddy]

Since they achieved an 'attractive outcome' then I'm guessing extra bonuses all around.

I've been away from the Office for a number of years. Has 'attractive outcomes' replaced 'takeaways' in meetings.

[Basil]

I've organized quite a few friendly meetings of investors over the years at the Viaduct and have never once met a single investor who could or has even tried to make a case for holding FBU.  Almost all seem to have an opinion that management and the directors are useless.
Maybe it's only institutions that waste their money investing with these Muppets?