Update on International Convention Centre and Group Trading

Fletcher Building today announced an update on their New Zealand International Convention Centre and Hobson Street Hotel project, revealing that the cost of the remediation is now expected to exceed insurance coverage.

This has resulted in an additional $150 million provision for costs to complete the project, with the cash impacts expected to flow through calendar 2023 and 2024.

The project is expected to be completed in early 2025 or better and CEO Ross Taylor said the additional provision is the result of the “significant complexity of the project rebuild”.

Trading across the Group remains consistent with the update provided at the Annual Shareholders’ Meeting in October.

Fletcher Building reconfirms its FY23 EBIT target (excluding Significant Items) of $855 million+.

A Q&A briefing for investors and analysts will be held today.