Fletcher Building's chief executive Ross Taylor is set to retire and its chair will also step down, as the company posted a significant loss for the first half of the financial year.
The confirmation comes after a share trading freeze amid speculation over Taylor's future at the company. In a media briefing this morning, both Taylor and chair Bruce Hassall said it's important they take accountability for the company's failings.
"As part of the privilege of leading, we both recognise that the buck stops with us," Hassall said.
Fletcher initially announced the news in a statement on the NZX this morning.
"Fletcher Building Ltd... today announces that Group Chief Executive Officer (CEO) Ross Taylor has given notice to the Board of his retirement and that as part of a Board renewal review being undertaken, Chairman Bruce Hassall will step down from the Board at the Company's Annual Shareholders Meeting later this year," the company said.
The company also revealed its results for the first half of the financial year with a net loss after tax of $120 million.
That's despite the construction giant posting revenue of $4248 million for the same time period.
That figure is down 1% from the $4284 million in revenue recorded at the same time last year.
"Against the backdrop of materially weaker trading conditions, particularly in the NZ residential sector where volumes declined 20%, Group revenue of $4248 million was in line with the prior period's $4284 million," Taylor said.
"The Group reported a net loss after tax of $120 million, compared to a profit of $92 million in the prior period."
The result was "heavily impacted" by work on Auckland's New Zealand International Convention Centre, he added.
"It would be a major understatement to say the Convention Centre has been a challenge," Taylor said at the media briefing.
Fletcher announced earlier this month that the project is set to cost an extra $165 million.
"Given the current market conditions, the expected legacy cash outflows and in line with the Company's dividend policy, the Board has made the prudent decision to not declare and pay an interim dividend in order to maintain our balance sheet settings."
Taylor also had a more personal message to share.
"Finally, I would again like to express my appreciation to our dedicated team for their hard work and commitment, to our customers for their trust and loyalty, and to our shareholders for their ongoing support."
Taylor has a six-month notice period and has agreed to stay longer if required to smooth the transition.
'I really care about this business' - outgoing CEO
Ross Taylor is retiring after recent blows to the construction giant. (Source: 1News)
Taylor told 1News he was "really keen to see a good transition" and would do what he could to help going forwards.
"I really care about this business," he said. "I've put so much of myself into it.
"I can lament the complexity and all the reasons why [it's] not my fault, but I am ultimately accountable for this business."
Taylor explained some of the challenges behind the Convention Centre fire.
"There was no formula," he said. "After the fire, the way it was put out with all the water, there was mould everywhere... People were concerned it might be harmful."
That meant 18 months working in full hazard gear with respirators – plus the effort to reapply fire retardant paint to the steel work on site.
"And then you had Covid in the middle," Taylor continued.
"I think we've done a really good job of getting focusing on getting a business that's future-fit while dealing with that," he later said.
SHARE ME