FBU-Fletcher Building

[lorraina]

Last time I was in Placemakers was about 12 years ago.
Bunnings and Mitre 10 offer excellent ranges, service ,advice and prices.
I usually check them out online before buying.

[Greekwatchdog]

There is a point of difference between Placemakers and Bunnings, Mitre 10.

PM was set up for builders only to the point where you could build a house from PM only. PM was never intended to be a DIY for the rest of us.

PM fell during Covid when they werent able to supply their clients and then treated xxx amount of clients like shite, hence for there enourmous decline past 3 years.

During that time Bunnings, ITM, Mitre 10 have become alot more engaged with this side of the buisness. PM face a very long road from here to gain back market share especially when there name is mud.

[Waltzing]

back in 22 there was an over weight rating on this one...

now.. probably not.. and there is a law suit coming from a certain cash strapped company that is deciding to either sell assets or CR..

https://www.interest.co.nz/business/134656/fletcher-building-has-taken-over-700m-hit-writedowns-and-given-clearest-indication

[Basil]

FBU is the train wreck that never fail's to deliver.  Their endless litany of write-down's year after year after year is unmatched on the NZX.  Its always worth reading their litany of excuses for systematic value destruction because they're such a great educational resource on what NOT to do in business.
Disc: Never held and no intention of ever changing that.

[LoungeLizard]

FBU is the train wreck that never fail's to deliver.  Their endless litany of write-down's year after year after year is unmatched on the NZX.  Its always worth reading their litany of excuses for systematic value destruction because they're such a great educational resource on what NOT to do in business.
Disc: Never held and no intention of ever changing that.

Yep, absolutely disgraceful, no other words to describe it. I'm surprised that the SP is still over $3 - no dividend, huge losses, incompetent management, on-going legacy issues. Pretty much un-investable imo.

[seaweed]

Yep, absolutely disgraceful, no other words to describe it. I'm surprised that the SP is still over $3 - no dividend, huge losses, incompetent management, on-going legacy issues. Pretty much un-investable imo.

Or maybe sell FBU and buy SPK for a nice juicy 12.5c div in a few weeks

[Greekwatchdog]

And lets not forget, the $350m share buy back. I said at the time it was a waste of money.

I guess Ross Taylor and the remainder of the EX's got their bonuses..

[Minimoke]

January 2017 SP was at a 10 year high of around $9.80

Feb 2017 Fletcher announce "Proud to build Pride for diversity"

"Fletcher Building is a principal sponsor of the Auckland Pride Festival 2017 and is the first construction and building materials company to achieve Rainbow Tick certification. Rainbow Tick certification demonstrates a business is an inclusive organisation for people who are lesbian, gay, bisexual, transgender, takatapui and intersex.

Chief People and Performance Officer Kate Daly said Fletcher Building strives to be a leader in diversity initiatives. "We are really focused on diversity across our business.  We want people to know there is no place for prejudice at Fletcher Building, we value diversity and this is a place where you can be your authentic self."

I think it is no coincidence that SP today is $3.08  - a 10 year low.

I am seeing this so often - distractions from core business.

[Basil]

Lets also not forget that their truly woeful performance over many years is against a backdrop of the FBU senior leadership team being amongst the very highest paid of any company on the NZX and the shareholders association claim that the FBU Board are THE very highest paid.  This is all the proof you need that having gold plated remuneration packages is not a guarantee of performance.  They're happy to continue collecting their gold plated remuneration while shareholders are left out in the cold again and get nothing.    Senior management and the board are a bloody disgrace, the whole lot of them.

[Cod]

It's my experience that as soon as a company over empowers an HR dept, it's all downhill for the company from then on. Until FBU sticks to it's knitting and restrains it's over zealous HR colleagues it remains uninvestable IMHO.

[Greekwatchdog]

Lets also not forget that their truly woeful performance over many years is against a backdrop of the FBU senior leadership team being amongst the very highest paid of any company on the NZX and the shareholders association claim that the FBU Board are THE very highest paid.  This is all the proof you need that having gold plated remuneration packages is not a guarantee of performance.  They're happy to continue collecting their gold plated remuneration while shareholders are left out in the cold again and get nothing.    Senior management and the board are a bloody disgrace, the whole lot of them.

Agree, sadly the guys and gals at the bottom are the ones who get screwed each time the Senior Management decisions blow up in their face.

I am over FBU. Sooner someone swoops it up and pulls it apart the better.

[Henry Filth]

I think the story goes something like this. . .

A hundred or so years ago, Fletchers were a small Dundedin builder. They grew in the 30s with the State House programme, expanded into general construction during WW2, emerging as a big national construction company.

They rode the national development boom of the 50s & 60s, becoming a conglomerate - New Zealand's biggest company - in the process, with a series of acquisitions, takeovers, and mergers. Then they went international, and got to the point where the consensus was that they had outgrown New Zealand.

At this point they started "unlocking shareholder value". There's been quite a lot of value unlocked over the past twenty-odd years.

Give them another twenty years (if that long) and they'll be back to their roots as a small Dunedin builder.

Is this the New Zealand business cycle at work?

[Shareguy]

So they brought Higgins for $315m in 2016 and have now sold the constuction division including Higgins, Brian Perry for $315m.

Plus a further provision of $55 to $65m for probable claims relating to legacy contracts.

Well they might need all that cash to help pay out the Iplex claims.

Just a disaster of a company.  The board incompetent beyond belief. If they survive the Iplex court case suggest a name change might be in order.

https://www.nzherald.co.nz/business/companies/construction/fletcher-buys-higgins-for-315m-restructures-into-5-divisions/CQMBWPKTYM5UQVMDSSVK7CMOAM/

https://www.nzx.com/announcements/466131

[Basil]

Not to forgot the above provisions do not include anything for the legal action Sky City are taking against them in regard to the convention centre and the fact that it's the highest paid board on the NZX.

[Red Baron]

So they brought Higgins for $315m in 2016 and have now sold the construction division including Higgins, Brian Perry for $315m.

Plus a further provision of $55 to $65m for probable claims relating to legacy contracts.

Well they might need all that cash to help pay out the Iplex claims.

Just a disaster of a company.  The board incompetent beyond belief.

I believe a change een ticker, and name of ze company eez coming vith ze zale of ze building division as vell.

Old version:  "Fletcher Building, FBU"
New Version:  "Fletcher Not Building, FNB"

RB