Financial results for the year ended 30 June 2017
Stock Exchange Listings: New Zealand (FBU), Australia (FBU)
Auckland, 16 August 2017:
Fletcher Building Industries Limited (the company) is a wholly-owned subsidiary of Fletcher Building Limited, and is the issuer of capital notes, which are guaranteed by Fletcher Building Limited on an unsecured subordinated basis.
|Financial results||Year ended 30 June 2017|
|Net profit after tax||$38.1 million|
|Net assets||$414.5 million|
The net profit after tax of $38.1 million compares with a net profit after tax for the comparable previous period of $67.9 million. As the company owns 20 per cent of the shares in Fletcher Building Holdings New Zealand Limited, which in turn owns the shares in Fletcher Building’s New Zealand operating subsidiaries, its investment in that company is equity accounted. The increase in the equity earnings reflects the strong activity levels experienced across the New Zealand businesses albeit impacted this year due to losses on contracts in the Construction division’s B+I business as announced to the market on 20 July 2017.
The financial performance of the company should be considered in conjunction with the financial statements of the Fletcher Building group. The debt to debt plus equity ratio of the Fletcher Building group is sound at 35.3 per cent.
The company has operated in compliance with the terms of the Trust Deed under which the capital notes were issued.