12 Feb 2018

Fletcher Building share trading halt to continue

9:52 am on 12 February 2018

Fletcher Building's share trading halt is to continue until Wednesday as it reviews its building and interiors unit.

Crane atop some construction in the Auckland suburb of Mt Eden

Photo: RNZ / Claire Eastham-Farrelly

On Thursday, the company called for the halt of its shares and capital notes on the New Zealand and Australian stock exchanges.

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

The company also 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.

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

It expected to make further losses because of delays and higher costs on two projects - the Justice Precinct in Christchurch and the Convention Centre in Auckland.

Fletcher said it was in discussions with its lenders over possible breaches of its borrowing arrangements because of the ongoing losses.

It has postponed an expected media briefing until Wednesday.

Analysts say Fletcher has a number of options to consider including a restructuring, a sale of assets, or capital raising.

Fletcher Building is the country's biggest construction company and has been under pressure as costs on major building projects have blown out.

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

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