Fleetwood's Coromal caravan

'Admissions first step to genuine turnaround'

Fleetwood board changes
still needed: investor

By Dennis Amor
Have your say

AN active investor in Coromal and Windsor caravans builder Fleetwood Corporation believes the Perth-based organisation has taken a turn for the better.

Sandon Capital, which last year became a shareholder with a 5.4 percent stake, makes the point in its recently released fund commentary for November.

It said new chairman Phillip Campbell had admitted at Fleetwood's annual general meeting that a "number of fundamental mistakes" had been made as it struggled through hard times.

"We agree, and believe that such admissions are the first step to effecting a genuine turnaround," Sandon said.

"We remain convinced that further board changes are required and look forward to the company's half-year results announcement in early 2017."

Activist investors are shareholders who seek to influence a company's decision-making by voicing concerns and taking a proactive and hands-on approach to improve things.

Sandon last year urged Fleetwood to dump its poorly performing caravan manufacturing operations.

But since then, the company has revealed a "substantial increase" in demand for its range of RVs.

In its annual report to shareholders, it admitted that while the rise in demand for caravans was very encouraging, the RV division was not expected to return to profitability during the first half of the current financial year.

"However, given how orders are trending, the board has confidence in the direction the business is taking," it said.

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