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Construction Financial Summary
As reported
Excluding B+I
2018 NZ$m 1,685 1,605
2017 NZ$m 2,246 2,085
Change NZ$m
Change %
2018 NZ$m 1,053 1,000
2017 NZ$m 1,196 1,103
Change NZ$m
Change %
Gross revenue External revenue
(561) (480) (404) (412)
(25%) (23%)
(143) (103)
(12%)
(9%)
(608) (238) (172)
(204)
NM NM
52
88
(36) (32)
(41%) (10%)
EBIT before significant items 1
Funds
174
274 113
306
Trading cashflow 74% 1 EBIT before significant items is a non-GAAP measure used by management to assess the performance of the business and has been derived from Fletcher Building Limited’s financial statements for the year ended 30 June 2018. (103) (69) 67% 65 48
Of the 16 key loss-making B+I projects ongoing at the start of FY18, seven were completed as at 30 June 2018, including the Justice and Emergency Services Precinct in Christchurch, Auckland University’s Engineering, Design and Technology building, Victoria University’s Gateway Building and Auckland East Prison. A further three projects are forecast for completion by 31 December 2018. At year end, contracted work underway for the division was valued at $1,784 million. FUTURE FOCUS As outlined in Fletcher Building’s strategy, the division will focus on stabilising its performance by completing B+I projects and refocussing the division on more profitable sectors such as infrastructure and roading. The New Zealand Government is planning significant investment in infrastructure in the coming years, which will support these plans. standalone business unit from 1 July 2018 – separated from the broader Infrastructure business unit to capitalise on future growth opportunities in groundwork, three waters and marine projects. During FY19 the division will re-invest to sustain future growth, with new piling equipment for Brian Perry Civil and two new asphalt plants to be commissioned to grow Higgins’ Auckland business. A central Project Management Office was established in March 2018, which will continue to build capability and help ensure consistent best practice across all the Construction businesses. Brian Perry Civil, including Piletech, PipeWorks and Seovic, became a
33 Fletcher Building Limited Annual Report 2018
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