eBusiness Weekly
Business Writer
Border Timbers said first quarter volumes to September 30, 2021 gained 15 percent to nearly 16 000 cubic metres after power transmission poles volumes nearly doubled.
Volumes of transmission poles nearly doubled to 4 145 cubic meters. Timber, also known as lumber, volumes improved to 11 578 cubic meters from 11 539 cubic meters in the same period last year, the company, whose operations are predominantly in Zimbabwe’s eastern highlands said. Border Timbers is among 10 companies, five Zimbabwean, shortlisted by Zambia’s power utility to supply power transmission poles.
Sales volumes climbed 4,21 percent to 17411 cubic meters from 16,707 cubic meters while timber sales volumes were down to 12,34 percent from 13 933 cubic meters in the first quarter ending September 30, 2020 to 12 213 cubic meters. Pole-transmission sales volumes increased to 5 198 cubic meters from 2,775 cubic meters.
Inflation adjusted revenue surged 47,53 percent to $462.01 million from $313.14 million in the first quarter ending September 30, 2020. Inflation adjusted profit was $101.2 million.
The company has also removed a monkey on its back as it is now out of judicial management, which it entered into six years ago. The company entered into judicial management after it failed to service debts worth $20 million.
In January 2015, Border Timbers applied to be placed under provisional judicial management as it faced viability problems which, at the time, left its 17 000-strong workforce edgy.
In 2015, the company said the decision to apply for judicial management came after one of its major creditors took the company to court.
By the end of 2021, the company had disposed of its loss-making subsidiary Border Timbers International and writing off $4,5 million in the process as part of a restructuring exercise which turned the firm’s fortunes.
Previously, the company’s exit from judicial management was delayed by the settlement and sharing of the $25 million that was awarded to the company by an International Court for Settlement of Investment Disputes (ICSID) tribunal.
Of late, it issued a cautionary notice advising the ongoing international arbitration proceedings between the company, other private parties and the government in respect of the compulsory acquisition of its land.
According to Border Timbers, an award was issued in its favour in 2015, but the government subsequently filed an application to annul the award.
Border Timbers, the largest kiln dried timber in Zimbabwe is an established Zimbabwean forest company with three operational divisions namely forestry, saw-milling and manufacturing with 20 002 hectares under plantation across five estates in Zimbabwe’s Eastern Highlands.
The company is a subsidiary of the Rift Valley Corporation. Formally established in 2012, Rift Valley Corporation is a leading agro-forestry business in Zimbabwe.
