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With this new focus, divestment processes have commenced for Formica and Roof Tile Group.
TOTAL SHAREHOLDER RETURNS In the last 12 months total shareholder returns for Fletcher Building have been disappointing, reflecting the market’s reaction to the downgrades made through the year, and the curtailment of dividend payments Encouragingly, in the last three months of the financial year the Fletcher Building share price increased 20%, as the market reacted positively to our equity raising, debt restructure and the announcement of our new strategy. We believe these initiatives will hold the Company in good stead and, as the new strategy is executed, our improved performance will be reflected in returns to shareholders. It has been a privilege to serve as chairman of the Fletcher Building board and in departing I offer my sincere thanks to our shareholders for their support during my tenure. While the last financial year has been a difficult one for the Company, the underlying performance of the business remains strong and with new leadership and a clear strategy, I am confident Fletcher Building will reach its full potential and deliver the returns our shareholders deserve. Thank you for your support and my best wishes to you, the Company and its people.
It has been a privilege to serve as chairman of the Fletcher Building board and in departing I offer my sincere thanks to our shareholders for their support during my tenure.
The new strategy sets a very clear path for the business, leveraging our strengths to deliver more value for our customers and improved returns for our shareholders. BOARD APPOINTMENTS On 22 June 2018 I announced Bruce Hassall as my successor and the appointment of four new directors, effective 1 September 2018. Barbara Chapman, Rob McDonald, Doug McKay and Cathy Quinn are high calibre individuals, who bring a mix of commercial, operational and governance expertise, which will greatly enhance the experience and diversity of the board. shareholders’ meeting, following nine years of service. In addition, Cecilia Tarrant made the decision to resign from the board effective 1 September 2018, following seven years’ service. I would like to thank Alan and Cecilia for their considerable contributions to Fletcher Building and wish them every success in the future. To finalise the board refresh it is expected that another director from Australia will be appointed in the near term. DIVIDEND Fletcher Building’s dividend policy is to pay dividends in the range of 50%–75% of net earnings before significant items, with consideration of available cash flow in the same period. Given the financial performance of the Company in FY18, and in line with this policy, the board has resolved not to declare a final dividend. The board expects, subject to satisfactory trading performance, to be in a position to resume dividends in respect of FY19. Dr Alan Jackson will retire at the conclusion of the 2018 annual
Sir Ralph Norris
Sir Ralph Norris Chairman
07 Fletcher Building Limited Annual Report 2018
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