Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Fulton Hogan delays AGM amid talks on Australian project

Fulton Hogan puts off annual meeting amid negotiations on Australian project

By Paul McBeth

Nov. 12 (BusinessDesk) - Fulton Hogan, the privately held construction company, has delayed its annual meeting until mid-December amid negotiations relating to a problematic Australian project which has already scuttled a scheduled share buyback.

The Christchurch-based company will hold its annual meeting on Dec. 19 as it continues holding talks that are "material to the annual results of the company," it said in a letter to shareholders. It will instead hold a series of informal meetings between Nov. 29 and Dec. 6 updating investors on Fulton Hogan's performance, which would typically be held after the AGM.

"These negotiations relate to the financial outcome of a project in Australia which has been impacted by severe adverse weather conditions and some complexities around the contract," chairman Ed Johnson said. "Obtaining clarity on the contractual matters is pivotal to the 2011-12 financial performance of the company and the provision of up-to-date and accurate financial information to shareholders."

In June, the company formally revoked its October offer to buy back small share parcels, citing some difficult trading and project issues in Australia as well as a potential acquisition opportunity.

Fulton Hogan's A$705 million joint venture with Leighton Holdings to upgrade the Sapphire-to-Woolgoolga section of the Pacific Highway in New South Wales lost 71 days to wet weather in the first six months of this calendar year. The project has been reported in Australian media as being in financial strife due to rainfall and poor planning. The upgrade didn't lose any work days in August.

The construction company gets more than half its revenue from across the Tasman after acquiring the half of Australia’s Pioneer Road Services it didn't already own.

Fulton Hogan ended the 2011 financial year with a forward order book of $3.2 billion, up 10 percent from a year earlier. Orders were helped by the company winning a share of the government’s roads of national significance programme, which made major roadways a funding priority.

The company said it expects available funding from New Zealand Transport Agency road maintenance and operations will come under pressure this year as the government realigns its focus.

"The NZ government is focussed on directing funds to areas of most need while maintaining borrowing to manageable levels and we know that Christchurch is a high priority in this respect," Robert Jones, chief operating officer infrastructure NZ, said in a quarterly update.


(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news