FBR hits 18-month low

Shares in robotics company FBR fell nearly 15 per cent today to their lowest point since June 2017, adding to a string of losses since it announced the termination of its strategic alliance with Caterpillar and a shift in strategy.

Perth-based FBR said late on Tuesday afternoon that its agreement with US construction company Caterpillar had been terminated.

In June last year, the parties signed a memorandum of understanding under which Caterpillar would be responsible for the development, manufacture, sales and service of FBR’s robotic bricklaying technology, including its Hadrian X prototype.

FBR chief executive Michael Pivac said the cancellation of the MOU was due to "emerging strategic imperatives".

“We acknowledge Caterpillar’s support to date and despite our strategic divergence we will continue to consider opportunities where we can work together in the future,” he said.

The company said Caterpillar confirmed its decision to part ways was not indicative of satisfaction with FBR’s technology or progress to date and was reflective of its own strategic priorities.

Caterpillar also said it would divest its 2.13 per cent stake in FBR.

The news came after FBR announced its Hadrian X autonomous bricklaying robot built a full home structure in less than three days, which sent its share price up nearly 30 per cent to 21 cents each.

The Caterpillar announcement came one day after the company outlined a new commercial model known as Wall as a Service (WaaS).

Under the system, a builder will place an order and a WaaS business unit will program and deploy the Hadrian X to construct that structure, as opposed to a company buying a robot outright.

In a letter to shareholders on Wednesday, Mr Pivac only briefly mentioned the cancelled Caterpillar deal, and tried to paint it as a positive.

"As a result, FBR is now free to discuss opportunities regarding DST and Hadrian X technology and supply with interested parties," Mr Pivac said.

FBR’s share price finished 14.8 per cent lower at 11.5 cents each today, more than 40 per cent down from its 21 cents per share high last month.

The last time the company’s share price was lower was back in June 2017.