(Alliance News) - Cambium Global Timberland Ltd reported a decrease in net asset value and a widened loss for the six months to October 31, as it continues to sell its Brazilian assets.
Cambium Global Timberland shares closed 6.4% lower in London at 11.00 pence each on Friday.
The plantation forest owner said its net asset value per share decreased 6.4% for the period and as of October 31 was 17.6 pence compared to 18.8 pence as at April 30.
The company said the change in net asset value per share comprised currency movements, net expenditure & other costs, and accrued interest on a loan from Peter Gyllenhammar AB. The loan was announced in 2017.
Cambium posted widened total loss of GBP654,381, compared to GBP647,636 at the same period a year ago.
Antony Gardner-Hillman, chair of the company, said: "The period showed land values holding their own rather than increasing in any significant way, supported perhaps by signs of interest from ranchers in light of a recovery in beef prices, but saw plantation values struggling in light of the subdued demand for both pig iron and pulp."
Back in August, the company had said it agreed to sell its tree farm at Agua Santa, in Minas Gerais, Brazil.
"The journey to exit Brazil, our only remaining location, continues to move in the direction of a conclusion. The ongoing frustrations are all to do with lack of urgency in the market, but we continue to look sensibly for the terms that will provide overall the best exit outcome for our loyal shareholders," Gardner-Hillman said.
Cambium said its focus remains on realising cash from wood and asset sales while selling or, if necessary, leasing properties to reduce management, maintenance and other costs.
"This is being achieved, albeit slowly, despite the fact that an upturn in economic activity in general and the land market in particular still has not yet occurred," the company said.
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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