Production down by 80%
Sales declined by 65%
However, demand remained high both in local and foreign markets
Harare - Having posted a poor performance in half year and nine months period for the full year 2021, timber grower and miller, Boarder Timbers Limited continued on a downward trend to crown the year ended 30 June 2021.
According to the Company’s financials, revenue, sales, lumber and treated poles production declined during the full year compared to the prior year, attributing the losses to COVID-19 restrictions which heavily affected the business operations.
Production of treated poles declined by 45% to 6 195 from 11 300 due to lower demand since the advent of Covid-19 while for lumber slumped by 35% to 33 041 from 51 017 owing to disruptions in production and logistical bottlenecks that were caused by COVID-19 pandemic as well.
Despite the decline in lumber production, Judicial Manager, Peter Bailey said its demand remains high, both in local and foreign markets.
Sales for the period under review both in lumber and treated poles declined by 28% and 37% respectively compared to the same period in 2020 leading to a loss in revenue of 13% to ZWL1.48 billion from ZWL1.69 billion recorded during the prior year.
In a statement accompanying the financials, Bailey said the Company will remain under judicial management for the foreseeable future.
With the continued recording of losses, the company which is also under judicial management might risk liquidation if major steps and investment plans are not taken to increase its capital reserves.
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