Harare – Agro-concern Border Timbers (BTL) reported a 16 percent rise in revenue for the six months to December 31, 2019, highlighting increased demand on the local and export markets.
Group revenue climbed to $12.6 million compared to $10.9 million achieved in the prior year.
In their trading update, the group’s judicial manager Peter Bailey said lumber production was lower compared to prior year due to low production in the month of December, however it was still enough to drive the group’s revenue performance boosted by increased demand on the local and export markets.
“Revenue saw positive improvement compared to comparable period mostly driven by lumber sales,” he said.
Treated pole sales volume declined from 11,063 cubic metres to 7,206 cubic metres during the period under review as a result of reduction in demand which consequently led to a decrease in production.
Poles produced amounted to 7,198 cubic metres during the period under review, down from 9,960 cubic metres in the previous period.
“Treated poled reflect a decline in both production and sales as they are tender based. There has been a reduction in demand for poles hence low production compared to comparable period December 2017,” Bailey said.
BTL was placed under judicial management in January 2015 after it had failed to settle debts owed to creditors.
The Zimbabwe Asset Management Company (Zamco) has since taken over $6 million in debt which is owed to local banks.
Last November the company was suspended from trading on the Zimbabwe Stock Exchange at its own request.
The Timber producer had not been able to publish its results because of pending arbitration proceedings between it, other private parties and the government at the International Centre for settlement of Investment Disputes since 2010 in respect of the compulsory acquisition of its land.
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