Border Timbers’ loss after tax widened from $4 million to $24 million in the full year to June due to a fire outbreak which led an asset write-down, the company said.
The company, which operates five estates and three sawmills in Eastern Zimbabwe, lost 5 000 hectares of forest land valued at $10.5 million to a fire.
“A net biological asset write-down of $16 126 133 was done during the year after re-assessment of the plantation quality after the fire. The fire damage affected mainly mature trees. A total of $10 547 122 was lost from the plantations due to fires,” said the company’s judicial manager Peter Bailey in a statement.
Revenue during the year was up 47 percent to $26 million driving the company to a gross profit of $5.8 million from a loss of $3.7 million last year.
Selling and distribution costs increased to $6.7 million from $2.2 million due to freight costs on increased poles business.
Total assets decreased by 19 percent to $122 million.
The company has been under judicial management since April.-The Source
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