Fleetwood facing board, financial losses

Caravan and accommodation manufacturer Fleetwood Corporation has foreshadowed a first-half loss of $5 million, while also announcing that its chairman and one of its long-serving directors intend to leave the board.

At the company’s general meeting today, chairman Michael Hardy said he intended to step down from the role as soon as a suitable independent successor had been identified, while non-executive director Peter Gunzburg resigned with immediate effect.

“This year has seen the board consider a number of initiatives in relation to governance, including board review, succession planning, the size and composition of the board and the interrelationship of the board and senior management,” Mr Hardy told shareholders today.

“That process is not yet complete, but it is intended that there will be a suite of policies in place in the near future which will establish a clear guide to the manner in which your company, through the board, will continue to provide the best leadership possible.”

Managing director Bradley Denison said the company was required to make a payment to a Queensland-based contractor in August, under the Queensland state’s rapid adjudication system.

“The payment impacted results for 2015 and the matter has also had an impact in the first half of 2016,” he said.

Mr Denison told shareholders a number of unresolved positions remained on both sides of the dispute and, as it was difficult to accurately predict the final impact on Fleetwood’s earnings, the company would be reporting a net loss in the first half of the 2016 financial year of about $5 million.

“The board is presently considering its options with respect to recovery,” Mr Denison said.

“My promise to you is that the board and the executive team are all aligned with our primary objective which is to restore value for shareholders, and I appreciate your patience while we implement these strategies to deliver that outcome.”

Fleetwood shares closed 6.3 per cent lower to $1.25 each.