The Judicial Manager of Border Timber Limited, Peter Lewis Bailey, issued the following trading update:
|Unaudited 5 Months to 30 Nov 2018|
|Revenue||$ 11 062 926|
|Profit before tax||$ 3 680 628|
|Cash profit before tax, after adjusting for non-cash items||$ 4 486 617|
Unaudited November 2018 Production and Sales Volumes
Lumber numbers reflect positive growth on both production and sales compared to comparable period November 2017 due to increased demand on the local and export markets.
Treated poles on the other hand reflect a decline in both production and sales due wet spell experienced in the first two months of the financial year which resulted in low production. The low production had a knock-on effect on the sales thereby resulting in delays in fulfilling the order book.
Revenue saw positive improvement compared to prior comparable period mostly driven by lumber sales.
Update on ICSID proceedings
Further to the Cautionary Statement published on 12 November, 2018, the final decision in the international arbitration proceedings between the Company, other private parties and the government of Zimbabwe pending at the International Centre for Settlement of Investment Disputes (“ICSID”) (“the ICSID proceedings”) was delivered on 21 November 2018 in favour of the Company and other private parties.
The Judicial Manager is considering various options and taking advice with regard to the ICSID award. Shareholders will be updated in more detail in due course. Meanwhile, shareholders are advised to exercise caution in dealing with the Company’s shares.
Board of directors
Messrs T. Hoegh and C. Ravizza have been appointed to the Board of Directors from 15th November, 2018 and Messrs S. Mattinson and M. Manga have resigned with effect from 15th December, 2018 and 9th January, 2019 respectively.