Forum Archive Index - August 2000

["Peter Maiden" <pmaiden@today.com.au>]

Mike

A graet response and insight to FLB, esp the distribution divsion.

Your comments confirm my statement and views that parts of FLB must be the 
worst managed companies in NZ.

Hopefully all the businesses are not dogs and some value can be extracted out 
of it for any future owner.

Another factor that concerns me is that there is no doubt a lot of inter 
company trading within the group and within the whole Fletcher organisation - 
how arms-length is this and what are the real margins businesses eould be 
making.

Last years accounts looked a lot better than the previous year - maybe you are 
correct that this years result will be flattering. In reality or massaged we 
will never know,  After all haven't those in the building industry had a good 
last 12 months (even James Hardy said they had a great year in NZ).

Whatever happens it looks like a lot of value can be realised by doing nothing 
but stripping away layers of top manmagement. Maybe that is what some potential 
buyers see - then selling off the divisions and letting dedicated people 
getting on with making money out of their own business - without the corporate 
'crap' that seems to inhibit the release of real potential.(IMHO)

Dis - always kept away from FLB because of this reasoning but have some at the 
moment (to sell at $2.35ish) because they were 'trashed' the other day.

Regards 

Peter 

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