Zimbabwe Stock Exchange listed company Border Timbers has recorded a 26% decline in treated poles production volume for the year ended 30 June 2017 with only 19 951m3 sold compared to 26 905m3 in 2016.
Group Chairperson, Peter Lewis Bailey attributed the drop in production to a slow start in regional contracted orders.
“This was due to a slow start in regional contracted orders; most of the orders were realized towards the end of FY17, the effect of which will be seen in FY18.
“Geographic market expansion remains the pole business’ main objective as the Company remains alert to opportunities in the region and beyond.
“Other income decreased by 50% from US$6.4 million in FY 16 to US 3.2 million, this was mainly due to a decrease in exports which resulted in lower freight recoveries,” he said.
Bailey added that selling and distribution expenses were 62% down from 2016 reflecting the reduced sales volumes and success in some cost containment measures.
“Selling and distribution expenses were down 62% from FY 16 reflecting the reduced sales volumes and success in some cost containment measures.
“The net loss after taxation was US$2 595 504 (FY16:$ 24 309 641), excluding the effects of the non-cash fire loss, the position would have been, a net profit after tax of US $ 3 746 740 (FY16: net loss after tax US $ 13 762 518).
“Turnover for the period decreased by 27% from prior year and this was as a result of reduced mill intake volumes in line with sustainable forestry management strategies coupled with the slow start in contracted orders on the poles,” said Bailey.
In order to sustain the company’s current positive cash generation, the board of directors decided not to declare a dividend.