TREE.L Regulatory News (TREE)

19 January 2011

Cambium Global Timberland Limited (the "Company")

Publication of Unaudited Condensed Consolidated Interim Report and Financial Statements

For the six months ended 31 October 2010

The Company announces that the Unaudited Condensed Consolidated Interim Report and Financial Statements for the six months ended 31 October 2010 are available and attached hereto.

An electronic copy is available on the Company's website www.cambiumfunds.com.

For more information:

Investment Manager

CP Cogent Asset Management

Richard Standeven

+1 214 871 5400

Broker

Matrix Corporate Capital LLP

Paul Fincham / Jonathan Becher

+ 44 (0) 20 3206 7000

Nominated Adviser

PwC

Melville Trimble

+ 44 (0) 20 7 213 8898

Chairman's Statement

The period covered by the interim financials saw many positive developments including land sales and additional land preparation to make way for the planting of approximately 2,300,000 seedlings on 5,700 acres in the Cambium portfolio. The period also proved to be a difficult one for many timberland owners including Cambium Global Timberland Limited. The Company's NAV as of 31 October 2010 is 80p per share compared to 91p per share at year end 30 April 2010. A dividend of 3p per share was paid during the period. Since inception in March 2007 total returns have been -10.9% compared to a -6.4% return for the FTSE EPRA/NAREIT Global Real Estate Index Series and a -21.8% return for the FTSE AIM index. Neither index tracks timberland values but do provide for a comparison of returns across asset classes over the period. The NAV of the Company was primarily impacted by both the cost of the options and the portion of the sterling appreciation that was unhedged. There was also a reduction in the appraised value of the timberland properties during the period.

The negative impact of revaluations on the appraised value of the portfolio of approximately -2.7% over the six months was primarily due to an adjustment to one of the two properties in Hawaii. The adjustment was made for damage associated with the sulphur dioxide emissions from a volcanic vent located upwind from the plantation. Additionally, the land value component of the US south properties was reduced during the period as third-party valuations caught up with current market realities. We do not anticipate further losses from either the volcanic emissions or land values in the Southern United States.

As we have communicated previously, the Company is using options on currencies to hedge the impact of foreign exchange movements. The options are purchased out of the money in order to reduce the option premiums paid by the Company, and therefore do not protect the first few percent of loss due to Sterling appreciation. During the period covered by these interim reports, the Company had a loss of approximately 1.0% of the NAV on the option contracts themselves and an additional loss of about 2.4% of the NAV due to sterling appreciation. Much of this loss has been recouped since the end of this reporting period as Sterling was weakened against the US Dollar and Brazilian Real, our two main currency pairs.

The first half of the fiscal year has been very active and we have taken steps to improve the liquidity of the portfolio and will reallocate this capital into higher risk-adjusted return projects particularly in Brazil. In May a $20,000,000 loan facility was taken out at attractive rates. Since the end of the reporting period we have completed the sale of 14,273 relatively immature acres in the southern United States for 97% of the 30 April 2010 NAV. These assets represented approximately 13.3% of the portfolio. Approximately $5,310,000 of the proceeds from the land sale has been used to retire debt. Additionally, the 3,200 acre asset in New Zealand was contracted to sell at 118% of 30 April 2010 NAV. The asset in New Zealand represents 4.1% of the NAV. We believe that these transactions provide market tested support for the valuation process.

We will announce the dividend for the Company with the year end report. In the absence of unseen circumstances we will maintain the dividend at the current level.

We believe that the characteristics of low-volatility and high long-term risk-adjusted returns compared with other asset classes identified at the time of the Company's launch remains valid. The Board and the Investment Manager are optimistic that the Company's portfolio of investments provides balanced and diversified global exposure to an attractive asset class. We look forward to updating you on our progress with the full-year results for the period ending 30 April 2011.

Donald Adamson

Chairman

18 January 2011

Investment Manager's Report

We believe as constructed, the global portfolio of timberland properties provides exposure to development projects in high growth areas, as well as standing timber in the world's most developed timber markets. We are encouraged by increases in product prices across most of our target markets during the period and believe this trend will continue. We are happy with the actions we were able to take through the first half of the year including the large land sale in the United States, the smaller non-strategic land sales, and the execution of a sale contract at a favourable price for the property in New Zealand and the low cost loan facility.

While the financial results during this period are disappointing, we took a number of steps during the period to maximise the return from the Company going forward. The two primary actions during the period are the $20,000,000 loan in May and the large land sale which closed in November. From the sale proceeds, $5,310,000 was used to retire debt. Both of these transactions provided liquidity and balance sheet flexibility to invest in higher returning investments primarily in Brazil. Plantation establishment in Brazil remains the most significant ongoing investment activity, and we anticipate investing an additional R$9,000,000 (£3,700,000) during this planting season.

Administrative expenses for the Company including the Investment Manager's fees, the Directors' fees and the legal and other professional fees associated with running the Company and all of the subsidiaries were about £820,000 for the period covered by the financials. We anticipate the administrative expenses of the Company will remain near this level of slightly less than 2% of net assets on an annual basis.

As of 31 October 2010, the Company had investments in each of the following areas:

US South

The primary end-use market served by our properties in the United States is housing. Through August, US housing starts were 412,000 year-to-date, about 8% above the same period in 2009. Additionally pine-saw log prices were 6% higher then the average for the same period last year. Although we are pleased with the positive improvement in stumpage prices, like many forestland owners, we will continue to store pine log timber inventory on the stump. Pine pulpwood harvest continues in the south as prices for this product continue to be attractive to timber growers.

The US South comprised approximately 49% of the value of the portfolio prior to the land sale and about 35% after the land sale. During the first half of the year, the properties declined in value by 4.9%. Property values have continued to be impacted by the difficulties of the building product markets and increased return expectations of timberland buyers. During the period, the properties produced revenue of $1,030,000 from the harvest of timber and recreational leases and $470,000 from the sale of non-strategic land. The timber sales were primarily from pulpwood thinning harvests. The land sale yielded a price at a premium to the fair value as of 30 April 2010. Non-strategic land sales remain a key part of the strategy in these areas and will continue as long as we own these assets. These timberlands will continue to generate positive cash flows from timber harvest, recreational leases and non-strategic land sales for the foreseeable future.

On 30 September 2010 we announced the sale of 14,273 acres of timberland in the United States. The transaction generated net proceeds of approximately $18,100,000, representing 97% of the 30 April 2010 NAV and 111% of the Company's cost basis. This land sale closed on 24 November 2010. After the retirement of debt the balance of the proceeds from the sale will be reallocated to higher returning investments primarily in Brazil.

During the period the properties were enrolled in an American Tree Farm System ® ('ATFS'), certification scheme. The ATFS, a program of the American Forest Foundation's Center for Family Forests, is committed to sustaining forests, watershed and healthy habitats through the power of private stewardship. ATFS has established standards and guidelines for property owners to meet to become a Certified Tree Farm. Under these standards and guidelines, private forest owners must develop a management plan based on strict environmental standards and pass an inspection by an ATFS volunteer forester every five years.

Hawaii

The properties in Hawaii are influenced predominately by the woodchip and log import markets in the Pacific Rim. We anticipate stronger markets for both wood chips and saw logs in 2011 as the global market continues to recover. The largest market is eucalyptus wood chips destined for pulp mills in Japan and China and the location of the assets in Hawaii is favourable to these growing end user markets. The logs on these assets are currently being marketed to a mix of end users including pulp and paper and energy producers.

The Hawaii properties comprise 9% of the portfolio. This year we experienced a write down of the Pahala asset due to the sulphur dioxide emissions from a volcanic vent that began emitting after the asset was acquired. The impact has been some mortality of the standing timber and general stunting of tree growth which impacts the final harvest. The Pinnacle asset has not been impacted by the emissions and continues to increase in value as it benefits from excellent biological growth. The net decline in the NAV of these assets over the six months is 15.5% and we do not anticipate further reductions from the volcanic gas in the future.

Although we conduct our forestry operations in an environmentally conscientious manner, there is no plan for certification of these properties at this time. As we do not own the land and cannot control the land use after the leases expire, we are unable to receive FSC certification.

Australia / New Zealand

China continues to be the driving force for the log markets in Asia. Australia, New Zealand, the US Pacific Northwest and Canada have benefited from this demand for softwood logs and finished lumber. Prices for radiata pine in the 3rd quarter of 2010 were approximately 21% higher than the same period last year.

The Australia / New Zealand properties represent 12% of the value of the portfolio. During the period we entered into a contract to sell the asset in New Zealand. The price achieved was at a premium to the 30 April 2010 NAV. Proceeds from the land sale will be approximately NZ $7,080,000 and will allow us to continue to invest in the high growth timber markets in Brazil.

The asset located in Australia generated AU$1,850,000 in proceeds from the sale of non-strategic land and other assets associated with the land. This sale was completed at the NAV as of 30 April 2010. Planting on the property has been completed and maintenance activities are minimal over the rotation length.

The asset in New Zealand is FSC certified and we are currently reviewing the certification options for the Australia asset.

Brazil

Brazil continues to be the most important ongoing investment project of the Company. Properties are being developed to capitalise on existing charcoal markets to be sold to pig iron producers and emerging pulp markets. Global pulp production was near record highs in the third quarter of 2010. South America has become a much more important player in the global market for fibre-based market pulp the past five years and this trend is expected to continue. In Brazil the markets for charcoal used for the pig iron industry have improved since experiencing a decline in 2009, and the average price for charcoal in 2010 is 35% improved over 2009.

The Brazil properties represent 29% of the overall value of the portfolio. Over the six months the properties produced returns of -5.4% during the first half of the year due to a downward adjustment for land value as well as expenditures for site preparation that are not valued until the trees are planted, which will occur in the second half of the fiscal year. We do not anticipate land values to decline further. As the planted timber continues to grow the biological growth will add significant value and drive NAV gains.

As part of our ongoing investment program in Brazil, we completed the site preparation work to make way for the planting of approximately 2,300,000 seedlings on 5,700 acres which will occur in the second half of the year. At the end of this planting season in May, we will have planted 13,500 acres representing approximately 50% of our plantable in Brazil acreage. The remainder of the property will be established over the next two years. We anticipate the properties will become cash flow positive beginning in 2015. We have begun the certification process on these properties and it is anticipated we will achieve certification across each of the properties in Brazil over the next 6‑18 months.

The first half of the fiscal year has been very active and we have taken steps to improve the liquidity of the portfolio and will reallocate this capital into higher risk adjusted return projects. The portfolio is located in favourable proximity to some of the fastest growing timber markets including Brazil and Asia. The global timber environment continues to improve in most of the regions that Cambium owns timber and timberland and we believe this bodes well for our investors. The existing portfolio has been designed to meet the return and cash flow targets that were outlined in the initial prospectus. While disappointed in the results during the period we are confident that the actions we took will seek to maximise return in the long term.

CP Cogent Asset Management LP

Investment Manager

18 January 2011

Unaudited Condensed Consolidated Interim Statement of Comprehensive Income

All items in the above statement are derived from continuing operations. All income is attributable to the equity holders of the parent company. There are no minority interests.

The notes form an integral part of these unaudited condensed consolidated interim financial statements.

Unaudited Condensed Consolidated Interim Statement of Financial Position

These financial statements were approved and authorised for issue on 18 January 2011 by the Board of Directors.

The notes form an integral part of these unaudited condensed consolidated interim financial statements.

Unaudited Condensed Consolidated Interim Statement of Changes in Equity

For the six months ended 31 October 2010 (unaudited)

For the six months ended 31 October 2009 (unaudited)

The notes form an integral part of these unaudited condensed consolidated interim financial statements.

Unaudited Condensed Consolidated Interim Statement of Cash Flows

The notes form an integral part of these unaudited condensed consolidated interim financial statements.

Notes to the Unaudited Condensed Consolidated Interim Financial Statements

1 General Information

The Company and its subsidiaries, including special purpose vehicles ("SPVs") controlled by the Company (together the "Group"), were established to invest in a global portfolio of forestry-based properties which can be managed on an environmentally and socially sustainable basis. Assets may be managed for timber production, environmental credit production or both. As at the interim date, the Group owned forestry assets located in Australia, Brazil, Hawaii, New Zealand and the United States.

The Company is a closed-ended company with limited liability, incorporated in Jersey, Channel Islands on 19 January 2007. The address of its registered office is One the Esplanade, St Helier, Jersey JE4 8UW.

These financial statements were approved and authorised for issue on 18 January 2011 and signed by Donald Adamson and Martin Richardson on behalf of the Board.

The Company has its primary listing on AIM, a market of the London Stock Exchange, as well a dual listing on the Channel Islands Stock Exchange.

2 Basis of preparation

The unaudited condensed consolidated interim financial information included in the half-year report for the six months ended 31 October 2010, has been prepared in accordance with International Accounting Standard (IAS) 34"Interim Financial Reporting". It does not include all of the information required for full annual financial statements. The half-year report should be read in conjunction with the Group's Annual Report and Financial Statements for the year ended 30 April 2010, which have been prepared in accordance with International Financial Reporting Standards ("IFRS"). The extra column of comparatives for the half year ended 31 October 2009 in the statement of financial position is an AIM requirement and notes to these accounts are not required.

Except as described below, the accounting policies applied by the Group in these condensed interim consolidated financial statements are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 30 April 2010.

The condensed consolidated interim financial statements have been prepared in Sterling, which is the presentational currency of the Group and under the historical cost convention, except for investment property, plantations, buildings, intangible assets and certain financial instruments, which are carried at fair value.

The preparation of the condensed consolidated interim financial statements requires the Directors to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the date of the condensed consolidated interim financial statements. If, in the future, such estimates and assumptions, which are based on the Directors' best judgement at the date of the condensed consolidated interim financial statements, deviate from actual circumstances, the original estimates and assumptions will be modified as appropriate in the period in which the circumstances change.

In preparing these condensed consolidated interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimating uncertainty were the same as those that applied to the consolidated financial statements as at, and for the year ended, 30 April 2010.

The following significant rates applied during the periods:

New accounting policies effective and adopted

The International Accounting Standards Board's ("IASB") annual improvements project of 2008 amended a number of existing standards with effect from 1 January 2009, none of which has had a material impact on the Group.

At the date of authorisation of these financial statements, the following Standards and Interpretations, which have not been applied in these financial statements, were in issue but not yet effective:

In addition the IASB completed its second and third annual improvements projects in April 2009 and May 2010, respectively. These projects amended a number of existing standards and interpretations effective for accounting periods commencing between 1 July 2009 and 1 January 2011.

The Directors anticipate that the adoption of these Standards and Interpretations in future periods will have no material impact on the financial statements of the Group except as follows:-

3 Operating segments

The Board of Directors is charged with setting the Company's investment strategy in accordance with the Prospectus. The Board of Directors is the Chief Operating Decision Maker ("CODM"). They have delegated the day to day implementation of this strategy to its Investment Manager but retain responsibility to ensure that adequate resources of the Company are directed in accordance with their decisions. The investment decisions of the Investment Manager are reviewed on a regular basis to ensure compliance with the policies and legal responsibilities of the Board. The Investment Manager has been given full authority to act on behalf of the Company, including the authority to purchase and sell timberland and other investments on behalf of the Company and to carry out other actions as appropriate to give effect thereto. Whilst the Investment Manager may make the investment decisions on a day to day basis regarding the allocation of funds to different investments, any changes to the investment strategy or major allocation decisions have to be approved by the Board, even though they may be proposed by the Investment Manager.

The Board therefore retains full responsibility as to the major allocation decisions made on an ongoing basis.

The Investment Manager will always act under the terms of the Prospectus which cannot be radically changed without the approval of the Board of Directors and Shareholders. Details of the investment restrictions are set out in part 3 of the Admission Document and the Investment Strategy, available on www.cambiumfunds.com.

The Group operates in five distinctly separate geographical locations, with timberlands located in New South Wales (Australia), the southern United States, Hawaii, New Zealand and Brazil.

The Group owns ten distinct parcels of land across five main investment strategies.

The Group owns approximately 16,445 acres in Ashford, New South Wales, Australia. This land was previously being used for cattle grazing and is now being planted with high-value commercial and non-commercial species with a view to longer term revenue from plantations and exposure to potential environmental markets.

The second strategy consists of buying established plantations in the southern United States. Established plantations with a balanced age class distribution are suitable for long and short-term sustainable yield. Marketable products include sawtimber and pulp, which can be sold into healthy forest product markets that exist in this geography. These properties also generate revenue from hunting leases and non-strategic land sales. After a land sale completed during the period since the reporting date, the Group owns 7,270 acres of land in Texas and another 29,122 acres of land spread across Florida and Georgia dedicated to this strategy.

The third investment strategy involves the development of fast-growth eucalyptus plantations to serve either export log markets in Asia or developing markets in Hawaii. The Group has a leasehold interest in two plantations on the Big Island of Hawaii dedicated to this strategy. Pahala consists of 3,700 acres and Pinnacle is approximately another 4,500 acres of maturing eucalyptus trees.

The Group has a fourth investment strategy of converting bare land to eucalyptus plantation for conversion to charcoal to serve pig iron markets or for emerging pulp and paper markets in Brazil. The Group owns one property in Tocantins, Brazil of approximately 25,700 acres and three properties in Minas Gerias, Brazil totalling 29,377 acres dedicated to this strategy. It is anticipated that the eucalyptus will be grown on a rotation length of seven years.

The Group also owns 3,200 acres located in New Zealand. It consists predominately of mid-rotation radiata pine plantation established in the mid 1990s with a small component of Douglas Fir and Cypress. During the period covered by these reports the property was contracted to be sold and the transaction is expected to complete in the next reporting period.

4 Revenue

The grant income was received from Border Rivers-Gwydir Catchment Management Authority (an Australian Government Authority) on signature of a Property Vegetation Plan ("PVP") in connection with the Tarrangower property. The PVP covers conservation management, regeneration of the area, natural revegetation and plantation and allows for income receipts of up to a total of AU$960,000 (approximately £524,990) on certification of certain milestones having been achieved by the landholder. The PVP is for a term of 15 years and is governed by the laws of New South Wales.

5 Administrative expenses

Administration of subsidiaries includes statutory fees, accounting fees and administrative expenses in regards to asset holding subsidiaries.

The Manager receives an annual management fee of 1%. of the NAV of the Company, payable quarterly in advance. In addition, the Manager shall be entitled to a performance fee in certain circumstances. The performance hurdle is 100 pence per ordinary share increased at a rate of 8%. per annum (compound). If the performance hurdle is met, the performance fee payable will be an amount equal to 20%. of the excess amount between the NAV and the performance hurdle.

6 Finance income

The classification of finance income per financial asset class is listed in notes 7 and 8.

7 Finance costs

8 Net gains and losses on financial assets and liabilities at fair value through profit and loss

9 Dividend

10 Basic and diluted (loss)/earnings per share

The calculation of the basic and diluted earnings per share is based on the following data:

Number of ordinary shares

Number of ordinary shares for basic and diluted earnings per share:

11 Net asset value

12 Investment property and plantations

No harvested timber was held at the end of the period (30 April 2010: £nil).

The land and plantations are carried at their fair value as at 31 October 2010 and 30 April 2010, as measured by external independent valuers American Forest Management Inc. James W. Sewall Company, Pöyry Forest Industry, URS New Zealand Limited, Holtz Consultoria LTDA, and Sandro Al-Alam Elias. Each of the valuers use similar methodologies, though this can vary depending on the type of investment and local practices.

The appraisals for the Corrigan and South Atlantic States properties in the United States were undertaken by American Forest Management Inc. and James W. Sewall Company, respectively. These appraisals conform to Uniform Standards of Professional Appraisal Practice in the United States. For these valuations, three valuation approaches were considered: the cost approach; the sales comparison approach; and the income approach. Each approach selected as being applicable and necessary to produce credible results is believed to have been applied appropriately.

The properties in Hawaii, Pahala and Pinnacle, are leasehold interests without any ownership of the underlying land. These investments were valued by James W. Sewall Company in accordance with IFRS. For these valuations the sales comparison approach and the income capitalisation approach were considered. Each approach selected as being applicable and necessary to produce credible results is believed to have been applied appropriately.

Pöyry Forest Industry valued the Tarrangower investment in Australia consistent with the local equivalent of IFRS. There is little comparable transaction evidence to determine the value of land for forestry purposes in the region. Therefore, Pöyry has applied a combination of the cost approach and the income approach to value the assets.

The 3R Tocantins property in Brazil was valued by Holtz Consultoria LTDA. The method applied for the bare land appraisal was the sales comparison approach. The analysis considered the bare land price from comparable transactions, soil quality, topography of the land, access and distance from cities and the proportion of the property which could be used for cultivation. The method applied for valuing the young tree crop is based on the standard costs approach.

The three properties in Minas Gerias were valued by Sandro Al-Alam Elias by first determining the highest and best use of the subject property. This analysis helps the appraiser identify comparable properties and identify the use that would produce the maximum income to the property. After determining the best use of the subject property, the appraiser analysed the value of the property using the cost approach, the sales comparison approach and the income capitalisation approach.

The asset in New Zealand is being held at the value at which it has been contracted to be sold.

The discount rates used in these appraisals range in value from 6.25% to 10%.

13 Sale of land and plantations

14 Buildings, plant and equipment

The buildings and improvements are carried at their fair value as at 31 October 2010 and 30 April 2010, as measured by external independent valuers Pöyry Forest Industry at 31 October 2010 and 30 April 2010 (in conjunction with the external valuation of plantations). The valuations have been prepared using techniques approved under IFRS. The motor vehicles and furniture and fittings are carried at cost less accumulated depreciation.

No impairment was recognised on buildings and improvements as the carrying value was the same as the valuations.

15 Sale of fixed assets

16 Intangible assets

17 Sale of intangible assets

The Tarrangower property has approximately 4 kilometres of frontage to the Severn River and has attached to it a water licenceadministered by the Department of Natural Resources in Australia ("DNR"). The 105 mega litre surface irrigation license (Number 90SL100620) has rights attached to it allowing an annual allocation of 48 mega litres A class and 57 mega litres B class from Pindari Dam, which is located 11 kilometres further up stream. The licence is renewable on a five year basis and at a small administration cost to the Group.

In the period to 31 October 2010 this water licence was disposed of along with the property it related to.

18 Trade and other receivables

19 Bank borrowings

The loan is secured on approximately 50,975 acres of timber and timberland assets located in multiple tracts in the states of Texas, Florida and Georgia. The fair value of these assets at the period end was £42,797,536.

The loan term is for ten years. The interest rate is fixed at 5.75% over the life of the loan. The loan has a termination date of 15 October 2020.

20 Financial assets and liabilities held at fair value through profit and loss

The above gains on options represent the total net unrealised gain.

Forward exchange currency contracts and options are used to hedge against foreign exchange exposure arising from investing in foreign operations and foreign currency transactions. The Group incurred an unrealised gain of £1,377,588 on the foreign exchange options. It is not the policy of the Group to perform hedge accounting under the terms of IAS 39 and therefore the effect of changes in exchange rates for foreign operations is recognised directly in comprehensive income. The loss on exchange differences recognised directly in other comprehensive income for the period amounted to £952,036.

As at 31 October 2010 there were six options to trade currency in place; three are held with MF Global (United Kingdom) Limited and three with Morgan Stanley.

Forward exchange currency contracts held by the Group at their forward exchange rates are listed below:

21 Foreign exchange effect

Comparison of movement in translation reserve and hedging loss:

22 Cash and cash equivalents

Cash at broker is held with MF Global (United Kingdom) Limited and an amount of £453,684 (30 April 2010: £70,086) is held as security.

23 Trade and other payables

* The Company's Brazilian subsidiary, 3R Tocantins Florestais Ltda., retained approximately 6% of the purchase price of the 3R Tocantins property for a period of 5 years, to support any liability associated with the previous ownership.

Advances held comprise timber sale proceeds received in advance.

24 Net asset value reconciliation

25 Stated capital

The total authorised share capital of the Company is 250 million ordinary shares of no par value with 104,350,000 shares issued at 100 pence each on initial placement. Ordinary shares carry no automatic rights to fixed income but the Company may declare dividends from time to time to which ordinary shareholders are entitled. Each share is entitled to one vote at meetings of the Company.

On 22 February 2007 a special resolution was passed by the Company to reduce the stated capital account from £104,350,000 to £2,000,000. Approval was sought from the Royal Court of Jersey and was granted on 29 June 2007. The balance of £102,350,000 was transferred to a distributable reserve on that date.

The Company, pursuant to its authority granted by shareholders to make market purchases of its own shares on 15 August 2008; on 4 September 2009 purchased 220,000 ordinary shares for cancellation at a price of 72 pence per share. The total amount was £158,400. This distributable reserve was utilised to make the share buy-back. The Company renewed authority granted by shareholders of the Company to make market purchases of its own shares on 4 October 2010.

26 Reserves

The movements in the reserves for the Group are shown on page 8.

Distributable reserve

The Company reduced its stated capital account and a balance of £102,350,000 was transferred to distributable reserves. This reserve can be applied if the entity wishes to purchase its own shares and for the payment of dividends.

Translation reserve

The translation reserve contains exchange differences arising on consolidation of the Group's foreign operations.

Revaluation reserve

The revaluation reserve arises from the revaluation of available-for-sale investments, intangible assets and buildings, plant and equipment.

27 Capital risk management

The Group's objectives when managing capital are to safeguard the Group's ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell net assets to reduce debt.

In order to ensure that the Group will be able to continue as a going concern, management continually monitors forecast and actual cash flows and attempts to match the maturity profiles of assets and liabilities.

28 Contingent liability

There is a security interest on the 3R Tocantins property to cover a liability, amounting to BRL 5,781,038 (approximately £2,118,993), between the previous owners and Banco da Amazonia, a financial institution which lent money to the previous owners who used the property as collateral. 3R Tocantins Florestais Ltda. holds a security interest of superior value on another property of the previous owner to cover this potential liability in the event it materialises. The last valuation on the security interest property amounted to BRL 6,942,578 (£2,393,167). The security interest the Company holds will only be released after Banco da Amazonia releases the security interest on the 3R Tocantins property.

29 Related party transactions

Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial or operational decisions. CP Cogent Asset Management LP is the Investment Manager to the Company under the terms of the Investment Management Agreement and is thus considered a related party of the Company.

During the period, £472,344 (2009: £513,896) was paid to CP Cogent Asset Management LP in respect of management fees.

Colin McGrady is a director of CP Cogent Asset Management LP, which acts as Investment Manager. He is also a Director of the Company and has waived his Director's fees for the period.

The Directors of the Company received total fees as follows:

30 Events after the reporting period

After the period end the Group completed the land sale of 14,273 acres of land located around Corrigan, Texas. Net of sales commissions and other transaction costs proceeds were approximately $18,100,000 equating to 97% of NAV from the year end appraisal cycle at 30 April 2010 and 111% of the Group's current cost basis. Additionally, the 3,200 acre asset in New Zealand was contracted to sell at 118% of the 30 April 2010 NAV. The assets in New Zealand represent 4.1% of the NAV.

Around $5,300,000 of the proceeds was used to pay down principal on the amount borrowed by the Group. The remaining amounts will be reinvested in expected higher return projects including the Group's forestation projects in Brazil.