Our Year in Review Strategy
Our Leadership
Divisions
Business Sustainability
Financials and Governance
BACK HOME
CEO's Report
Results at a Glance
Chairman's Report
CEO’s Report
We have strengthened the business by refocussing our Construction division on project completion, undertaking a capital raising that has significantly strengthened our balance sheet, and launching a new Group strategy. As a result, we have started FY19 on strong foundations and with clear priorities. • Refocussing the Construction division A detailed analysis of all B+I projects in February this year resulted in a $486 million increase in our provisioning and ultimately, a total B+I loss of $660 million in FY18. Subsequently we decided to cease bidding in the vertical construction sector to reduce future risk to the business from the current market dynamics. While it was not an easy decision to make, we believe that it was the right course of action to provide more certainty for our shareholders and the business as a whole. We have committed to completing our remaining B+I projects within these new provisions, while refocussing our bidding on lower- risk, higher-margin sectors such as infrastructure and roading. • Review of capital structure and equity raising The increase in B+I provisioning resulted in breaches of our debt covenants and triggered a full review of our capital structure. On 17 April 2018 we announced a 1 for 4.46 accelerated entitlement offer to both institutional and retail investors for $750 million, and a new standby loan facility with three of the banks in our commercial lending syndicate. The offer was very well received by investors, with a 98% acceptance of entitlements by institutional shareholders and a 56% acceptance by retail shareholders. In both cases shareholders who did not take up their entitlements, or were not eligible to do so, received a significant premium to the offer price for the shares sold on their behalf – ensuring all shareholders were treated equitably.
Ross Taylor CEO
I was delighted to join Fletcher Building as CEO in November 2017. While the year has not been without its challenges, we have completed FY18 meeting our earnings guidance, while containing our B+I losses within the provisions we announced to the market in February 2018.
08 Fletcher Building Limited Annual Report 2018
Made with FlippingBook - professional solution for displaying marketing and sales documents online