International company Fletcher Building will sell its Australian-based plumbing business Tradelink after “disappointing” results.
Fletcher, which trades on the Australian and New Zealand stock exchanges, made the announcement in a stock exchange notice.
“A full review of the Australian Tradelink business over the half year combined with disappointing results led to a $122 million non-cash impairment and write-down in its carrying value,” Fletcher chief executive Ross Taylor said.
“We have concluded that whilst we believe there is a compelling opportunity for Tradelink, further ownership of the business is not in line with the strategic objectives of Fletcher Building.
“Consequently, we intend to commence a divestment process for Tradelink shortly.”
In its newly-announced half-yearly results, Fletcher Building announced a net loss of NZ$120 million ($112.65 million) – compared to the previous half-year’s net profit of $92 million ($86.37 million).
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“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 said.
Taylor, along with Fletcher board chair Bruce Hassall, will leave the company later this year.
Taylor said he was prepared to be accountable for the company’s half-yearly results.
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https://www.9news.com.au/national/fletcher-trading-to-sell-tradelink-plumbing-business/2e50bbb9-9666-4d3c-ad78-e352c9a602ac
