Harare, 2020 (New Ziana) – Border Timbers posted a loss of $878 000 in the nine months period ending March 2020, down from a healthy $3.45 million profit in the same period last year.
The company blamed Covid-19 for impacting sales in the just ended
reporting period.
But the Mutare based timber producer saw its revenues jump strongly
to $182 million in the period, on the back of price increases,
compared to $20.8 million in the same period in 2019.
Overall sales, however, dropped to 51 508 cubic metres for both poles
and lumber, from 57 212 cubic metres in 2019.
“…the global economies experienced the devastating effects of COVID-19
pandemic which resulted in lockdown measures which affected both our
local and export markets,” the company’s judicial manager, Peter
Bailey said.
“Treated poles reflect a decline in production and sales volume
compared to same period prior year, this was because of lower demand
during half of 2020,” Bailey said.
Border Timbers’ future profitability could no longer be ascertained in
the face of a combination of economic challenges including
hyperinflation, a weak local currency and the Covid-19 pandemic, he
said.
Border Timbers was placed under judicial management four years ago
after having failed to settle debts amounting to about US$20 million.
Trading in the company’s shares was subsequently suspended on the
Zimbabwe Stock Exchange in November 2018.
New Ziana
