8 Feb 2018

Fletcher Building calls for another trading halt

11:31 am on 8 February 2018

Fletcher Building has asked for a trading halt of its shares and capital notes on the New Zealand and Australian stock exchanges.

Highrise construction generic, multistory building generic, construction generic

Photo: 123RF

It called for the halt as it reviews key projects in its Building and Interiors business.

The company said the review was part of the preparation of the group accounts for the six months ending 31 December.

The company called for a trading halt in October last year, before slashing its full-year profit guidance as it revealed a $160 million loss in its building and interiors section.

The company's chief executive abruptly resigned in July last year.

It is the country's biggest construction company and has been under pressure as costs on major building projects blew out.

For the year ended June last year, it reported a net loss of $292m.

It expects its current trading halt to continue until Monday.

In a short statement to the NZX today, the company said it expected further losses on top of what was suggested late last year.

"Once the extent of those further losses is determined and provided for, it is expected that this would result in a breach of one or more of the covenants in the group's financing arrangements," the statement said.

Fletcher Building said it would not be interviewed until next week.

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