Border Timbers’ loss widens after fire, $16mln asset write-down

Border Timbers’ loss widens after fire, $16mln asset write-down

MUTARE, October 6 (The Source) – 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 on Thursday.

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.