Published: 27 September 2013

Timber producer Border Timbers recorded a $1,2 million in profits for the year ending June 30, 2013 representing a 35 percent decline from the same period last year.

The decline in profit came on the back of a 14 percent fall in revenue from $28 million to $24 million during the period under review due the decommissioning its veneer mill at its Paulington factory in Mutare.

The company however said the decommissioning of the mill is expected to enhance profitability going forward.

In terms of sales, revenue from doors was 7 percent lower than the prior year, while earnings from rough sawn timber sales were down 10 percent as a result of reduced production.

However strong performance was recorded in poles and mouldings, which surpassed prior year results by 4 percent and 2 percent respectively.

"Average selling prices were weaker as a result of a higher proportion of export sales this disadvantage is however partially offset by a shorter payment cycle," the company said.

Finance costs rose by 49 percent to $2,8 million, a reflection of the level and cost of borrowing for the group.

Going forward the company said continued cost containment will remain the focus and efforts are underway to align overheads to the size of the operation.
- bh24

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