BUSINESS REPORTER
Timber producer, Border Timbers Limited, is recapitalising its business as it eyes growth after exiting judicial management.
The company exited judicial management in March, seven years after its board of directors lost control of the entity.
In a statement accompanying the financial results for the full year to June 30, 2022, published this week, board chairman Elias Hwenga, said the recapitalisation process will be completed at the end of 2023.
“The company is in the process of recapitalising its two sawmills with the latest milling technology and commissioning of the new machinery is expected by the end of FY2023,” Hwenga said.
He added: ‘’Recapitalisation remains a key priority with our replanting programme already on course to reduce the unplanted area to industry standard of 5% in the next three years.”
It comes after Border Timbers swung into a profit of ZWL$4.8bn in the 12 months to June 30, 2022 from a loss of ZWL$4.79bn in the prior comparative period, owing to increased demand.
Revenue rose by 11% to ZWL$4.79bn in the period under review from ZWL$4.3bn reported in the same period last year.
The forestry division planted 713 hectares during the reported period, a major increase over the previous year’s 341 hectares.
However, the volume of timber produced, at 43 930m3, was 4% less than the previous year due to low demand.
Lumber sales volumes also decreased to 43 120m3 from 49 047m3 in the year prior on the back of reduced aggregate demand in the local market.
As a result, the company said it has engaged in efforts to broaden the export market base in the southern African region.
More so, as the firm sought new chances both locally and regionally for its manufacturing sector, treated poles sales increased 7.4% throughout the time.
The company is anticipating increased demands across all divisions specifically from the regional markets where key infrastructure development projects are set to take place.
“The company’s product quality remains highly regarded in the market and the current marketing efforts will increase demand for the company’s Kiln Dried Timber.
Improved performance is anticipated in the poles business due to increased demand for the product in the SADC region where rural electrification projects and infrastructure developmental projects are attracting financial support.
“We forecast poles sales performance to be bolstered by Mozambique, Botswana, Zambia as well as the local market,’’ Hwenga said.
Border Timbers is also targeting to have its Sheba, Charter, and Tilbury Estates FSC (Forest Steward Council) by the end of 2023.
