HARARE, March 31 (The Source) – Agro-industrial concern Border Timbers, which is currently under provisional judicial management, reported a 35 percent drop in revenue to $8,7 million in the six months to December 2016 from $13,5 million in the prior year.
The company incurred an operating profit of $263,808 compared to $712,122 the previous year.
Cost of sales dropped 20 percent from $10 million in the same period the prior year to $8 million.
Profit for the period declined from $187,997 to $25,137.
Finance cost climbed to $635,081 from $533,833 while cash generated dropped 12 percent to $2 million.
The company, which operates five estates and three sawmills in Eastern Zimbabwe, was placed under final judicial management in March 2016 after failing to service debts to several financial institutions worth $20 million.
Final judicial manager Peter Bailey said the company will soon reach an agreement with major lenders.
“If the proposal put before the creditors at those meetings (with the high court) are approved by the required proportion, l will recommend to the master of the high court that the company be taken out of judicial management,” said Bailey in a statement.