Struggling agro-industrial concern, Border Timbers Limited says it is focusing on improving production efficiency to expand its product sales into both the local and export markets.
The company recorded a production decline in the six months to December 31, 2020 on account of the COVID-19 pandemic and weak production although it remains optimistic of better fortunes in the current year.
“The Company remains cautiously optimistic about the current financial year with focus being placed at replacing some of the obsolete equipment, which is expected to improve efficiency,” said the company Judicial Manager, Peter Bailey in its latest trading update.
The company has been under judicial management since 2016 after failing to service debts to several financial institutions worth $20 million and will remain so for the foreseeable future.
Despite demand for Lumber being very high both in the local and the export markets, production was lower compared to prior year due to disruptions in production and logistical bottlenecks that were caused by COVID-19 lockdown restrictions in the first quarter of the financial year.
Treated poles reflect a decline in production and sales volume compared to prior year; this was because of lower demand during Q2 of FY21 and the adverse effect of the Covid-19.
“However, measures are in place to further develop the export market with a view of increasing sales volumes,’ said Bailey.
However, the Gazetting of Statutory Instrument 185 of 2020 during the half year under review, on dual pricing policy was extremely encouraging on the business front as it ensured flexible business pricing strategies which significantly improved value preservation.