Fletcher Building chief executive Ross Taylor Photo: RNZ / Cole Eastham-Farrelly
Construction firm Fletcher Building's full year net profit is down 46 percent, hit by significant costs and flat revenue growth.
Key numbers for the 12 months ended June compared with a year ago:
- Net profit $235m vs $432m
- Revenue $8.47b vs $8.5b
- Underlying profit $798m vs $756m
- Full year dividend 34 cents a share vs 40cps
Fletcher chief executive Ross Taylor said the underlying profit rose by 6 percent which was a "good performance in a slowing market".
However, the bottom line was hit by significant costs of $301 million.
"The significant items related mainly to additional provisions of $255m on the New Zealand International Convention Centre and Hobson Street Hotel ('NZICC') project," Taylor said, adding the company's balance sheet remained strong with $1.4 billion liquidity.
The convention centre contract has been a source of financial pain for Fletcher Building, with cost overruns, design changes, and the 2019 fire causing significant losses.
Cash flows from operating activities were $388m, compared with $592m the year earlier.
"Looking forward to FY24, we expect some further tightening in our overall volumes and so our focus remains on strong customer performance, cost control and pricing disciplines across our businesses," Taylor said.
"We also continue to look beyond the cycle and are now well into our $800m growth investment programme for the period FY23-FY26."
"Our $400m investment in Winstone Wallboards GIB plasterboard manufacturing and distribution facility in Tauranga has now commenced production and will be fully operational by the end of October 2023.
"The new plant's state-of-the-art technology delivers more production capacity allowing for product innovation and future growth."