PHOTO: Fletcher Building’s Ross Taylor (Source: 1News)
Fletcher Building‘s CEO, Ross Taylor, is preparing to retire alongside the departure of the company’s chair, following a significant loss reported for the first half of the financial year.
SPECIAL OFFER: Looking to advertise online but finding the ‘BIG BOYS” too expensive?
This confirmation follows a temporary halt in share trading amid speculation regarding Taylor’s future within the company. The announcement was made by Fletcher in a statement on the NZX this morning.
According to the statement, “Fletcher Building Ltd… today announces that Group CEO Ross Taylor has informed the Board of his intention to retire, and as part of an ongoing Board renewal review, Chairman Bruce Hassall will resign from the Board at the upcoming Annual Shareholders Meeting later this year.”
Furthermore, the company disclosed its financial results for the first half of the fiscal year, reporting a net loss of $120 million after tax. This comes despite the company generating a revenue of $4.248 billion during the same period, marking a slight decrease of 1% from the $4.284 billion recorded last year.
Ross Taylor attributed the loss to challenging trading conditions, particularly in the New Zealand residential sector, which saw a 20% decline in volumes. He stated, “Against the backdrop of materially weaker trading conditions, particularly in the NZ residential sector where volumes declined 20%, Group revenue of $4.248 billion was in line with the prior period’s $4.284 billion.”
He added, “The Group reported a net loss after tax of $120 million, compared to a profit of $92 million in the prior period.” Taylor emphasized that the result was significantly affected by the ongoing work on Auckland’s New Zealand International Convention Centre, which was announced earlier to require an additional $165 million investment.
In light of the current market conditions and anticipated legacy cash outflows, Fletcher’s Board has decided not to declare and pay an interim dividend, aiming to maintain the company’s balance sheet settings.
Taylor also expressed gratitude towards the team, customers, and shareholders for their dedication, trust, loyalty, and ongoing support.
Ross Taylor has a notice period of six months.
SOURCE: 1NEWS