By Alois Vinga
LISTED timber milling and manufacturing firm, Border Timbers, is set to harness fruits of moving out of judicial management amid plans to escalate productivity across its units.
This follows the cancellation of the judicial management order by the High Court after the company successfully completed its turnaround strategy.
The cancellation was made on March 9, 2022.
In an update this week, Border Timbers finance director, Lysius Karimanzira, revealed that a number of activities are set to be undertaken following the recent exit.
“The business is forecasting a positive trajectory and growth following its exit from Judicial Management in March 2022. With Imbeza Estate being FSC Certified, it is expected that new markets will be opened, and plans are underway to get the other Estates certified.
“During FY2023, old saw-milling equipment will be replaced with latest technology in order to increase production efficiency,” he said.
In the nine months ended March 2022, revenue grew by 5% compared to the same period the previous year, attributed to consistent quality of the Kiln Dried Timber, which resulted in better average selling prices and improved customer demand.
Lumber sales volume was 7% down compared to the comparative period in the prior year owing to low production volume as a result of power outages as well as the extended rainy season that affected harvesting operations.
The demand for Lumber remains high both in the local and export market.
Treated poles sales volume was 17% higher than the same period in the previous year. This was as a result of marketing initiatives, which have seen an increase in the market share within the region.
The company’s major risk remains the loss of forestry to fire, prompting the company to continuously review and strengthen its fire patrol teams as well as upgrading the firefighting equipment.
“The focus going forward is on intensifying our replanting activities, capitalizing on the rains, and advancing the winter planting plan,” added Karimanzira.