Wood-processing concern Border Timbers has narrowed its loss to $4,3 million in the financial year ended June 30, 2015 attributed to the impact of measures instituted by the provisional judicial manager.
BY TARISAI MANDIZHA
In the comparable period last year, Border posted a loss of $9,3 million.
The company was placed under provisional judicial management in January to protect all stakeholders after it had failed to negotiate with lenders.
In the period under review, revenue declined to $17,8 million from $18,1 million.
In a statement accompanying the group abridged audited results for the year ended June 30, 2015, Border Timbers provisional judicial manager Peter Bailey said the company was undergoing a significant turnaround and was now generating positive cash flows.
He said: “Renewed efforts are underway to belligerently increase footing and traction in the higher average selling price local market combined with care and vigilance in credit risk management.”
Operating loss from continuing activities for the year amounted to $3,2 million as compared to
$8,7 million in 2014.
“The performance of the company during the Provisional Judicial Management period has been able to direct free cash towards working capital and suppliers and has been able to sustain operations, without additional funding.
“The voluntary placement of the company under provisional judicial management together with the benefits of measures initiated in 2014 have begun to have positive impact and the company posted reduced losses of $1,7 million during the second half,” Bailey said.
In the period under review, finance costs shot up by 14% to $2,5 million from $2,2 million in 2014.
Bailey, however, said the company had managed to reduce the net loss by 54% from 49,3 million in the prior year to 44,3 million.
During the period under review, cash generated from operating activities increased by 267% to $3,8 million from $1,3 million last year.
Bailey said: “Sustainable performance is anticipated on both poles and lumber on the back of heightened demand for the products in the Sadc region where rural electrification projects and infrastructure development projects are being funded through increased foreign direct investment.
“Structural lumber performance is forecast to be boosted by viable demand in both local and regional markets where property development is being championed and funded by public expenditure projects.”