| FLLYR: FBU: Fletcher Building confirms FY20 annual results |
08:31a.m. |
|
| FBU |
| 19/08/2020 08:31 |
| FLLYR |
| PRICE SENSITIVE |
| REL: 0831 HRS Fletcher Building Limited |
|
| FLLYR: FBU: Fletcher Building confirms FY20 annual results |
|
| Fletcher Building confirms FY20 annual results |
|
| Auckland, 19 August 2020: Fletcher Building today announced its audited |
| annual results, confirming a net earnings loss for the year ended 30 June |
| 2020 (FY20) of $196 million compared to a profit of $164 million in the year |
| ended 30 June 2019 (FY19). The Group also confirmed strong operating cash |
| flows of $410 million and ended the year with a strong balance sheet with |
| liquidity of $1.6 billion. |
|
| Summary: |
| - Final results in line with market announcement of 11 August 2020 |
| - Revenue of $7,309 million |
| - EBIT before significant items $160 million |
| - Net Loss After Tax of $196 million, compared to a profit of $164 million in |
| FY19 |
| - Strong cash flows of $410 million |
| - Balance sheet strong with liquidity of $1.6 billion and net debt of $0.5 |
| billion |
| - Nil dividend |
|
| Fletcher Building CEO Ross Taylor said: "Fletcher Building's FY20 performance |
| was characterised by the impacts of COVID-19 and the actions we took to |
| ensure we were well positioned to successfully navigate the market |
| uncertainty in FY21 and beyond. Prior to March 2020, the business was trading |
| in line with expectations and making good progress with operating |
| efficiencies. The subsequent lockdown in New Zealand and restrictions in |
| Australia had a significant impact on our FY20 revenues and profitability. |
|
| "Our focus through this period has been on three key areas: the health and |
| safety of our people; enhancing the resilience of our business by managing |
| our costs, cash flows and balance sheet; and ensuring we stay focused on |
| strong customer performance and delivering our strategy. |
|
| "We have been unwavering in our commitment to health and safety. We are |
| driving positive change in our safety culture through our company values and |
| a genuine belief that all workplace injuries are preventable. In FY20 serious |
| injuries reduced from 15 to 8 and we had no fatalities. While our Total |
| Recordable Injury Frequency Rate (TRIFR) 5-year trend continues downward, our |
| FY20 rate was slightly up from last year. This only strengthens our |
| commitment and focus on preventing all injuries. |
|
| "Anticipating lower market activity ahead, we have taken some difficult but |
| decisive actions to reset the cost base of the business. We expect these |
| actions to deliver a permanent reduction in our cost base in FY21 of |
| approximately $300 million per annum. Significant items in respect of this |
| restructuring, along with one-off charges in our Rocla business and from the |
| early repayment of our USPP debt, have totalled $276 million in FY20. We have |
| sized our business for a market downturn of around 25 percent in New Zealand |
| and around 20 percent in Australia, although there is a high degree of |
| uncertainty over the outlook. We will be looking hard at the trends in |
| activity over the next few months and will be ready to adapt and respond if |
| needed. |
|
| "As already announced, we decided to raise a further $150 million provisions |
| against our historical construction projects. While this was disappointing, |
| Fletcher Construction, through a reset of bid margins and disciplines now has |
| a $2.4 billion forward-order book of new work with a materially better margin |
| outlook and lower-risk profile. |
|
| "Pleasingly, our operating cash flows in FY20 have remained robust at $410 |
| million, supported by effective working capital management in a disrupted |
| period. We have also preserved strong liquidity and funding lines. Our |
| leverage ratio remains below the bottom end of our target range, we have |
| total available funding of $2.1 billion as at 30 June 2020, and liquidity for |
| the Group was $1.6 billion. In addition, we pre-emptively renegotiated |
| covenants with our lenders to enable us to rely on more favourable terms for |
| covenant testing through to the end of 2021, should we need to. |
|
| "As a result of the actions we have taken, our business is well-positioned to |
| continue to drive its strategy and performance improvement. We will continue |
| key investments in our digital and innovation strategies, while also taking |
| opportunities to grow our market share either in our existing product lines |
| or in logical adjacencies. With our strong balance sheet, we expect the |
| tougher market will present better opportunities to achieve our aspirations |
| and overall strategies." |
|
| In line with the Company's Dividend Policy, the Board has not declared a |
| final dividend for FY20. |
|
| #Ends |
|
| Authorised by: |
| Andrew Clarke |
| Company Secretary |
|
Originally Posted by Checkmate
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