Fulton Hogan, one of the giants of the New Zealand roading and civil construction sector, is delaying its annual meeting in Christchurch six weeks because of issues with a commercial project in Australia.
One of New Zealand's largest private companies, Fulton Hogan said yesterday it would hold its annual meeting in Christchurch on December 19, about six weeks later than usual.
The extra time "will enable Fulton Hogan to gain clarity on commercial negotiations that are material to the annual results of the company. These negotiations relate to the financial outcome of a project in Australia which has been impacted by severe adverse weather conditions," the company said.
Nick Miller, managing director of Fulton Hogan, said: "We are confident of being in a position to further these commercial discussions in coming weeks so that we are able to present the most accurate and up-to-date financial reports and forecasts to shareholders."
Fulton Hogan reported a profit for the year to March 2011 of $73.9 million from revenues of $2.45 billion.
Its annual results have not been filed yet and will be filed before the annual meeting, a company spokeswoman said.
In the past few years Fulton Hogan shareholders, of which there are about 2230, have been slowly buying out cornerstone shareholder Shell New Zealand, which now has about 15 per cent of the company.
Many shareholders are related to the founding families, the Fultons and Hogans, and staff hold about 11 per cent of the shares.
The company is encouraging shareholders to attend one of a range of informal meetings for shareholders ahead of the annual meeting.
Fulton Hogan is not saying who it is engaged in commercial negotiations with but other financial media have reported problems with the A$705m (NZ$900m) "Sapphire to Woolgoolga project" which is a 25-kilometre upgrade of the Pacific Highway to a four-lane divided highway from Campbell Close in Sapphire to Arrawarra Beach Rd, Arrawarra in New South Wales.
A contract for the design and construction of the upgrade was awarded to a joint venture between Leighton Contractors and Fulton Hogan in early 2010. The upgrade is jointly funded by the Australian and NSW governments.