FBU-Fletcher Building

[Toddy]

If you are an employee of FBU and are in the FBU share where you buy FBU shares automatically from your pay after tax. Do not fret, according to the FBU website you can log in and view how many shares you own and what they are worth 24/7.

I wonder if the share scheme trust will participate in the cap raise.

From what I hear, the Culture down at HQ in Penrose is at an all time low. They have been laying alot of staff off. And that's saying something.

[Basil]

If you are an employee of FBU and are in the FBU share where you buy FBU shares automatically from your pay after tax. Do not fret, according to the FBU website you can log in and view how many shares you own and what they are worth 24/7.

I wonder if the share scheme trust will participate in the cap raise.

From what I hear, the Culture down at HQ in Penrose is at an all time low. They have been laying alot of staff off. And that's saying something.

I am sure you meant to say "Morale".  The culture of greed and entitlement runs very deep in FBU and the tone has been set from the top with exorbitant salaries for senior management for appalling performance and massive directors fees for egregiously poor governance.  Can't blame the vast hordes of middle management for their sense of greed and entitlement, they're merely following the examples of the board and senior management.  Culture in an organization is very difficult to change, often impossible.    For mine, the culture of the place makes FBU uninvestable.

[winner (n)]

Things still pretty rough out there for Fletchers with much less activity than FY24

No worries as the boss says they are on track "to fulfil our potential and to build a company that our people, customers, communities and our shareholders, can be proud of."

https://api.nzx.com/public/announcement/440488/attachment/430196/440488-430196.pdf

[Cod]

Fletcher Building Price Target Cut 7.1% to NZ$2.22/Share by Macquarie

FBU share price now cemeted in the 2.xx range for a while, I don't believe the much touted infrastructure spend by govt will do anything except keep them afloat for a while, as FBU ability to make a profit on contracts seems to be hit and miss at best.

[Shareguy]

Jenny is on the money

So my reaction to the news that Chapman had covid and therefore couldn't attend was a Tui's: "Yeah, right." The good news was that in her pre-recorded address to the AGM, Chapman announced she would step down from the board once her successor has been appointed. The bad news is that she doesn't expect that to happen until "the first quarter of next calendar year." 

https://justthebusinessjennyruth.substack.com/p/do-fletcher-buildings-shareholders

[Basil]

What a coward.  Speaking of such, I'd wager there's a very good reason Jeff has stepped down hurriedly, (recalling his resignation was originally scheduled for later this year), from all roles before the Heartland AGM next week.

Cowards would rather go into hiding than face the music.  Should be an interesting HGH meeting next week.  I have lots of curly questions for the board. 

[Basil]

https://www.nzherald.co.nz/business/fletcher-living-at-winstones-ex-three-kings-quarry-massive-plan-downsize/Q5RL6M44ABFAXEAXPQKOKJTVAI/

Plans downsized a lot for three kings development.  Paywalled.
Interesting development.  I walked my dog up the three kings hill immediately adjacent to this development a few weeks ago and views from different parts of that hill give an excellent overview of the whole scheme as well as outstanding views over Auckland.   Well and truly worth the effort, especially on a fine day, and my dog enjoyed walking somewhere new too. I think they're doing a good job there but the culture of greed and entitlement that runs very deep at Fletchers makes them uninvestable in my opinion.

Information on this interesting place to have a walk is here   https://www.freewalks.nz/three-kings-walks-auckland/

[Cod]

SkyCity is suing Fletcher Building and the Fletcher Construction Company for $330 million, saying it had taken 10 years instead of three to build the New Zealand International Convention Centre.
In an NZX notice issued today, SkyCity explained the action.
The claim seeks damages for losses incurred by SkyCity arising from ongoing delays in the completion of the project, including those that resulted from the 2019 fire.
In response, Fletcher said it had already flagged risks associated with the convention centre (NZICC), it was committed to delivering the project and would vigorously defend itself.
But SkyCity said the NZICC was now nearly six and a half years behind the contractually agreed delivery date of January 2019.

--- oopsie.

[Left Field]

FBU's response to today's SKC legal action

https://www.nzx.com/announcements/452931

Ouch (thankfully not a holder)

[Basil]

One thing for sure is that some very high priced commercial lawyers will be winners.

[BlackPeter]

One thing for sure is that some very high priced commercial lawyers will be winners.

True ... while they say that it is the house which always wins (talking about a casino business), lawyers clearly stand still above them in the foodchain.

The other thing we already know: it is always shareholders who are going to pay. My money would be on the FBU share holders being further fleezed (how much below the skin can one go?) , but SKC shareholders might well contribute to the loot.

Let the games continue - watching these two fight is nearly as much fun as seeing Elon and Chump ripping into each other.

[Shareguy]

It's not as bad as stated

SKC's claim (now totaling >$330m), is inclusive of liquidated damages paid to date, which implies that SKC are seeking an additional c.$75m - $100m of compensation from FBU. 

Who pays... well agree with Bp.

[Basil]

The write-offs over many many years, never ever end at Fletchers.  I actually think there is a culture within the company that write-off's are just part of normal business operations and are perfectly okay.  There is a culture of greed and arrogance that runs very deep in FBU and starts right from the top with the board, despite their truly appalling performance over the years, being the highest paid on the NZX.  The greed and arrogance runs deep within that company.  Totally uninvest-able at any price.

https://www.nzx.com/announcements/453802  Except  • In addition to the Significant Items already announced:
– ~$10m to ~$15m is expected to be incurred in relation to defending construction legacy and Western Australia plumbing issues.
– As a result of the strategic review actions taken, additional non-cash Significant Items of between ~$250m and ~$440m and cash Significant Items of between ~$50m and ~$60m are expected in FY25, which will be finalised as part of year end reporting. These will primarily relate to restructuring and redundancy costs, goodwill and brand impairments, closure costs and the write off and provision for onerous contracts associated with ERP projects.
Altogether the total Significant Items to be announced as part of the FY25 results are expected to be between ~$573m and ~$781m.

[winner (n)]

Significant Items are business as usual

You cannot view this attachment.

[Basil]

Oh my goodness, thanks mate....words almost fail me.  So this is their worst ever year of write-offs by miles !
The cockroaches just keep on coming and are getting even bigger !!