LONDON (Alliance News) - Phaunos Timber Fund Ltd said Friday its net asset value per share fell 13% over 2015, as the US dollar strengthened against the fund's operating currencies, but said it would have seen a profit were it not for the foreign exchange movements.
Phaunos invests in timberland and timber-related investments in New Zealand, China, Brazil, Tanzania and Mozambique. It is managed by Stafford Capital Partners Ltd.
The company said its net asset value was down at USD278.8 million for the year ended December 31, from USD321.3 million, or USD0.49 per share from USD0.57 per share, but said its results were largely encouraging over the year, with this decrease down to the strengthening of the US dollar.
Phaunos said revenue from its timber operations and investment income was up to USD16.3 million from USD11.7 million over the year, whilst net cash inflows rose by 90% to USD12.9 million from USD6.8 million.
Costs were down at USD8.4 million from USD11.4 million, and Phaunos said it will continue to make cost savings in 2016.
"These accounts show the significant progress the company made this year. 2015 was the first full year of Stafford's management and the majority of the initial objectives they set out on their appointment have been achieved, either during the year or in the months since. The company is now stable; costs have been reduced with further savings in train for 2016. Most of the high-risk assets have been realised and cash flow is now positive," said Chairman Henry Studholme.
"Excluding unrealised foreign exchange movements and the non-recurring costs, saved by the sale of the Chinese plantations and the closure of the Boston office, the Company's result would have been a small profit," Studholme added.
Shares in Phaunos were untraded on Friday, having last traded at USD0.360.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
Copyright 2016 Alliance News Limited. All Rights Reserved.