3 great opportunities to double the money with FBU since 2012 - buy low, sell high.
Just have a look at the chart.
As predictable as rain on the West Coast during spring!
Printable View
FBU will get it right some day soon and the stock will fly.
It's a real shame that they have this leaky pipe issue hanging over them.
The last 10 years of stuff ups has definitely been down to mismanagement as opposed to external factors.
Compass Homes in Auckland have concluded its now too tough to make money building residential houses in the Auckland region.
It will be interesting to see if Fletcher Residential can buck the trend.
The good old "significant items"
https://www.nzx.com/announcements/425713
Update on NZICC and WIAL Carpark projects
5/2/2024, 8:30 amMKTUPDTEAuckland, 5 February 2024: Fletcher Building (the “Company”) today announced an update on the New Zealand International Convention Centre and Hobson Street Hotel project (“NZICC”) and the Wellington International Airport Carpark project (“WIAL Carpark”).
The NZICC project remains on track for completion in late calendar 2024. Progress to date has included: carparks are now complete; the Hobson Street Hotel is scheduled to be handed over to the client this month; and steel remediation throughout the International Convention Centre is 98% complete. Despite this progress, actual and expected costs to complete the project have increased, principally in the areas of steel remediation, internal fit-out, and installation of operating systems. The increased costs are primarily due to higher levels of subcontractor resource required to deliver the final stage of the project. In addition, a portion of the Company’s claims against the project Contract Works Insurance (CWI) may not be recoverable. Based on the latest cost and revenue forecasts, the Company has determined that it will make an additional provision on NZICC of $165 million, classified as a Significant Item in its half year 2024 financial statements.
The Company continues to pursue recoveries under the NZICC Third Party Liability (TPL) insurance policy of more than $100 million. While the Company considers it has good grounds for its TPL claims, no TPL revenue is included in the current project forecast – in line with accounting standards.
On the WIAL Carpark project, the Company continues to work with the client to agree a remediation solution to quality issues and to settle claims. Based on its latest assessment of the cost of the remediation, the Company has determined that it will make a provision on WIAL Carpark of $15 million, classified as a Significant Item in its half year 2024 financial statements.
CEO Ross Taylor said: “The NZICC rebuild is a significantly complex and challenging project. It is disappointing we require further provisions on this project and the WIAL carpark. We remain on track to complete construction of all legacy projects by the end of calendar 2024, however cost and revenue risk will remain until we have done so. We will vigorously pursue our claims for recoveries on the legacy projects, which are likely to take until FY25-26 to settle.”
The Company’s HY24 results and financial statements will be released on Wednesday 14 February 2024.
Think of the positives. No more leaky pipe provisions.
Just another $180m shareholders won’t see
Good doesn’t impact profitability eh
Probably announced today hoping big players taking long weekend and won’t notice when they come back
Have to laugh - only in NZ and with FBU can a project contracted to be built for $450m end up costing over $1 billion! And 5 years behind schedule!
Thats a bit short sited to the real "Root Cause" as to why the project is in this state.
Fire Sub Contarctors mistake
Covid and Shut downs. How many did you have up there and for how long?
Couldn't get any staff
Shortage of materials
Inflation escalated costs dramatically XXX%
A PERFECT STORM