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Residential and Development Financial Summary
Residential and Development FY18 Revenue Weighted Sector Exposure
Year ended 30 June
2018 NZ$m
2017 NZ$m
Change NZ$m
Change %
19%
Gross revenue
575
420
155
37%
External revenue
575
420
155
37%
EBIT
136
130
6
5%
Funds
604
547
57
10%
Trading cashflow
109
(49)
158
NM
81%
Residential Infrastructure/other
FUTURE FOCUS The division’s vertically integrated model continues to enable it to effectively source and develop land in desirable locations, providing a good pipeline of developments to bring to market. Its aim is to deliver 1,000 dwellings a year, subject to market conditions. Residential continues to see strong demand for quality homes, at the right price point, and has 3,707 units on its balance sheet, with a further 1,272 units under unconditional agreements, to be delivered over the next five years. As one of the largest home builders in New Zealand, the division can make a significant contribution to the Government's KiwiBuild programme support implementation during FY19. Following successful trials in FY18, a new panelisation plant in Auckland will be commissioned, which will allow Fletcher Living to deliver homes more efficiently in a supply constrained market. It is anticipated that the new plant will initially deliver an additional 300 homes per year to support Fletcher Living’s pipeline, with the opportunity to then extend supply to Government agencies and other group home builders. and will continue to engage with Government on opportunities to
We will leverage our end-to-end relationship with other Fletcher Building businesses, our proven ability to innovate and our unique position as both a residential and land developer to deliver housing and community solutions that set us apart from our competitors.
Steve Evans Chief Executive Residential and Development
Fletcher Living Whenuapai
31 Fletcher Building Limited Annual Report 2018
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