1 00:00:00,120 --> 00:00:02,759 Speaker 1: Now, Fletcher Building's chief executive and board faced some pretty 2 00:00:02,840 --> 00:00:05,920 Speaker 1: unhappy shareholders today at the company's and your General Meeting. 3 00:00:06,200 --> 00:00:08,959 Speaker 1: The new chief executive, Andrew Redding, had to deliver more 4 00:00:09,000 --> 00:00:11,800 Speaker 1: bad news, if you can believe it, announcing that revenue 5 00:00:11,840 --> 00:00:14,160 Speaker 1: was down twelve percent in September compared to a year 6 00:00:14,200 --> 00:00:17,880 Speaker 1: ago and gross margins were under pressure. Oliver Amanda is 7 00:00:17,880 --> 00:00:20,520 Speaker 1: the chief executive of the Shareholders Association and he was 8 00:00:20,560 --> 00:00:21,880 Speaker 1: actually at the AGM today. 9 00:00:21,880 --> 00:00:25,799 Speaker 2: Hey Oliver, Hi Heather, how are you very well? Thank you? 10 00:00:25,880 --> 00:00:28,800 Speaker 1: Although jeez, when is this bad news going to end? 11 00:00:30,440 --> 00:00:33,880 Speaker 2: Well? Shareholders of Fletcher Building really hope it ends very soon. 12 00:00:36,000 --> 00:00:38,120 Speaker 1: Do you expect that it will end soon? 13 00:00:38,200 --> 00:00:38,400 Speaker 2: Though? 14 00:00:38,479 --> 00:00:41,240 Speaker 1: Hope and expectation are two completely different things. 15 00:00:42,120 --> 00:00:44,040 Speaker 2: They completely are. And look, that was one of the 16 00:00:44,120 --> 00:00:46,760 Speaker 2: questions that I did ask today. Look, I think the 17 00:00:46,760 --> 00:00:48,800 Speaker 2: thing that reallysted out at the meeting for me was 18 00:00:48,840 --> 00:00:53,040 Speaker 2: the fact that the people on the podium to day, 19 00:00:53,560 --> 00:00:55,720 Speaker 2: they were a very humble group of people. And that's 20 00:00:55,760 --> 00:00:57,600 Speaker 2: the sort of humility that we have not seen in 21 00:00:57,640 --> 00:01:00,320 Speaker 2: a Fletcher Building board for a very long long time. 22 00:01:01,000 --> 00:01:02,680 Speaker 1: How did they demonstrate their humility? 23 00:01:04,200 --> 00:01:06,520 Speaker 2: I think they they were very prepared to listen to 24 00:01:06,520 --> 00:01:09,480 Speaker 2: what shareholders had to say. They allowed you. You know, 25 00:01:09,840 --> 00:01:13,679 Speaker 2: the questions that were being asked were really quite authentic 26 00:01:13,680 --> 00:01:15,080 Speaker 2: in terms of what was coming from the floor and 27 00:01:15,120 --> 00:01:18,440 Speaker 2: the impact that the that the company's performance has had 28 00:01:18,480 --> 00:01:23,959 Speaker 2: on shareholders in terms of their own returns and expectations. 29 00:01:24,160 --> 00:01:26,960 Speaker 2: And the company was very clear about taking accountability for that. 30 00:01:27,000 --> 00:01:29,240 Speaker 2: Board members, individual board members are very clear about taking 31 00:01:29,240 --> 00:01:32,720 Speaker 2: accountability for that. Yeah, we know from what we wrote 32 00:01:32,760 --> 00:01:35,120 Speaker 2: back in February that since February, the board has taken 33 00:01:35,280 --> 00:01:37,679 Speaker 2: significant steps to address many of the kids and the 34 00:01:37,760 --> 00:01:40,280 Speaker 2: concerns that we're raised, and that does include the fact 35 00:01:40,280 --> 00:01:42,039 Speaker 2: that half the board is now no longer there. 36 00:01:42,360 --> 00:01:45,000 Speaker 1: Do you think accountability is part of the reason why 37 00:01:45,000 --> 00:01:47,240 Speaker 1: Barbara Chapman is announced he's going to resign as a director. 38 00:01:50,240 --> 00:01:52,960 Speaker 2: I think that is a that's a really good question, Heather, 39 00:01:54,480 --> 00:01:58,480 Speaker 2: That's possibly it, but also it's Fletcher Building has been 40 00:01:58,520 --> 00:02:04,040 Speaker 2: a notoriously difficult company to govern for some time. I 41 00:02:04,120 --> 00:02:06,600 Speaker 2: don't think Chapman ever put herself forward as a long 42 00:02:06,680 --> 00:02:10,120 Speaker 2: term chair for the organization. I think the board has 43 00:02:10,160 --> 00:02:14,040 Speaker 2: listened to shareholders in terms of seeking out experienced people 44 00:02:14,120 --> 00:02:18,600 Speaker 2: in the building products industry or building materials background that 45 00:02:18,800 --> 00:02:21,960 Speaker 2: are probably much more suited to that board. Any board 46 00:02:21,960 --> 00:02:24,560 Speaker 2: needs a balance of skills to govern itself effectively. That's 47 00:02:24,639 --> 00:02:27,959 Speaker 2: very true. But also when thinks not and balanced, things 48 00:02:27,960 --> 00:02:29,560 Speaker 2: don't go well. And that was a point that was 49 00:02:29,600 --> 00:02:31,480 Speaker 2: made by shareholders today as well. 50 00:02:32,520 --> 00:02:34,639 Speaker 1: You must know the new chief executive because he was 51 00:02:34,639 --> 00:02:37,000 Speaker 1: obviously the chair at the Shareholders Association for Ages. 52 00:02:37,040 --> 00:02:41,880 Speaker 2: Yeah, yes, so I know Andrew reading very well until 53 00:02:41,880 --> 00:02:44,519 Speaker 2: August the twenty second, of course he was my chair here, 54 00:02:44,680 --> 00:02:45,919 Speaker 2: so that's right, And. 55 00:02:45,919 --> 00:02:47,840 Speaker 1: Tell me about him as he got the chops to 56 00:02:47,840 --> 00:02:48,639 Speaker 1: turn this thing around. 57 00:02:49,919 --> 00:02:55,600 Speaker 2: Well, we would argue that Andrew he knew Fletchers when 58 00:02:55,600 --> 00:02:57,799 Speaker 2: it was good, way back in two thousand and six 59 00:02:57,840 --> 00:03:00,600 Speaker 2: when he worked there, and he certainly comes from pedigree 60 00:03:01,600 --> 00:03:03,600 Speaker 2: at that time at a time and the company was 61 00:03:03,680 --> 00:03:08,160 Speaker 2: high performing at a time when look, he was one 62 00:03:08,200 --> 00:03:10,160 Speaker 2: of the people in been running for the top job 63 00:03:10,200 --> 00:03:12,720 Speaker 2: at that time. So knowing what the company was like 64 00:03:12,760 --> 00:03:16,080 Speaker 2: when it's good, balanced with a very heavy dose of 65 00:03:16,160 --> 00:03:19,280 Speaker 2: external perspective, and in did to say his own commentary 66 00:03:19,320 --> 00:03:23,800 Speaker 2: on Fletcher Building dating from way before I got here. Look, 67 00:03:24,160 --> 00:03:27,560 Speaker 2: I think that does provide the new broom that shareholders 68 00:03:27,560 --> 00:03:30,160 Speaker 2: have been looking for and it was really interesting. I mean, 69 00:03:30,200 --> 00:03:33,560 Speaker 2: since he's been there in the two short months since 70 00:03:33,880 --> 00:03:36,280 Speaker 2: he hasn't ounced the strategic review of the portfolio of 71 00:03:36,320 --> 00:03:39,040 Speaker 2: businesses that Fletcher holds. We think that's a really critical 72 00:03:39,040 --> 00:03:41,800 Speaker 2: step because actually that's ultimately about making sure that the 73 00:03:41,800 --> 00:03:45,720 Speaker 2: company allocates capital and the right way allocate's capital into 74 00:03:45,760 --> 00:03:48,240 Speaker 2: the businesses that can provide the highest return for shareholders 75 00:03:48,240 --> 00:03:52,320 Speaker 2: going forward. And you know he's got a very focused 76 00:03:52,360 --> 00:03:57,160 Speaker 2: plan would seem focused on cost reduction, cash management, capital avocation, 77 00:03:58,680 --> 00:04:00,920 Speaker 2: closing up the legacy issues had as well as that 78 00:04:00,960 --> 00:04:06,200 Speaker 2: strategic review. So all that sounds really promising and well 79 00:04:06,360 --> 00:04:10,280 Speaker 2: hopeful for shareholders to use that terrible word, and look, 80 00:04:10,960 --> 00:04:13,520 Speaker 2: we would hope he's being supported by a board that 81 00:04:13,600 --> 00:04:15,800 Speaker 2: can give him the support that he needs to undertaker's work. 82 00:04:15,920 --> 00:04:18,440 Speaker 1: Yeah, fairpoint, Oliver, Thanks very much, Oliver Man, the chief 83 00:04:18,440 --> 00:04:21,200 Speaker 1: executive of the Shareholders Association. She's tough times at Fletcher. 84 00:04:21,240 --> 00:04:25,360 Speaker 2: Et for more from Hither Duplassy Alan Drive. Listen live 85 00:04:25,480 --> 00:04:28,320 Speaker 2: to news talks. It'd be from four pm weekdays, or 86 00:04:28,360 --> 00:04:30,479 Speaker 2: follow the podcast on iHeartRadio.