Border Timbers eyes SADC market, revenue hits US$15,8 million

By Alois Vinga

LISTED forestry and sawmilling company, Border Timbers Limited (BTL) has pinned growth hopes on increased Poles demand in the SADC region on the back of an aggressive recovery strategy which has seen revenue reaching US$15 million.

The company’s performance so far demonstrates astute focus, especially after considering that it exited judicial management just last year after a decade under the arrangement.

BTL chairman, Elias Hwenga this week revealed that the company still has surging potential if it taps into the regional market for growth potential.

“Improved performance is anticipated in the Pole business due to increased demand for the product in the SADC region where rural electrification projects and infrastructure developmental projects are attracting financial support,” he said.

For the year ended June 30 2023, BTL revenue reached US$15,8 million signifying a 23% increase from the figure of US$12,9 million posted in a comparative period last year.

However Net profit before taxation was US$0, 9 million lower than US$9.8million recorded in last year.

The company attributed last year’s performance to non-cash gain on biological asset transformation of US$14,8million.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.

Albeit the new Charter sawmill  being commissioned on the 18th of July 2023 and plans being on-course to have the Sheba sawmill installed and commissioned in December 2023, the company believes that recapitalisation remains a key priority.

 During the period under review, 1,327 hectares (FY2022: 713 hectares) were planted, a significant improvement compared to prior year with focus on improving the Biological Asset, applying best practices, and improving planting methods.

“The company’s statement of financial position remains very strong with a solid asset base supported by the biological assets and property, plant and equipment.

“Treated Poles sales volume was 7 297m3(FY 2022: 10 189m³), a 28% decrease compared to the prior year. This is mainly because of timing differences which are experienced in the acquisition of pole tenders, which is asymmetrical, “added Hwenga.