Fletcher Building is eyeing possible expansion of its distribution businesses, after the listed building supplies and construction company reported a 51 per cent surge in first-half profit.
After announcing a jump in interim net profit from $114 million to $172 million in the latest December half-year, chief executive Mark Adamson said further acquisitions were likely, particularly in the highly profitable distribution arm of the business.
"We're focused predominantly on generating more from what we've got. [Merger and acquisition], as we have seen here, is extremely distracting and can be value destructive," Adamson said, referring to Fletcher selling assets which did not generate enough profit.
"But as we grow, we will have an eye on what we can potentially buy. We like our distribution assets," he said, naming PlaceMakers, Mico Plumbing and Fletcher Easysteel.