SUNBIZ

Future Forests Highlights Plans To Overcome Challenges Ahead

Future Forests (Fiji) Limited has indicated it is in need of further capitalisation and the directors have had positive discussions with potential strategic investors. As a plantation company whose main
18 Feb 2015 07:54
Future Forests Highlights Plans To Overcome Challenges Ahead
Masum Buksh.

Future Forests (Fiji) Limited has indicated it is in need of further capitalisation and the directors have had positive discussions with potential strategic investors.

As a plantation company whose main asset are trees which may not mature for another 16 to 20 years, the company has planned for lean periods.

The company, in a market announcement yesterday, said the current period is more challenging than it had planned for.

“At this point, the directors are confident that opportunities are available to stabilise the company,” the statement read.

The directors are understood to be working with their professional advisers on a number of related matters on which they hope to make announcements in the next eight to 10 weeks.

The South Pacific Stock Exchange had placed a trading halt on Future Forests shares and convertible notes on Monday.

This was until the company disclosed to the market the current cash flow challenges and how it plans to deal with it in the short and medium term.

The company’s constrained cash flow situation was reported to members at the Annual General Meeting of the shareholders held on November 21, 2014.

The directors reported to shareholders some of the immediate steps being taken to allow the company to trade through until new sources of revenue were identified, including from nursery operations and small-scale sawmilling.

The company said its budding sawmill operations on identified pine holdings in Ra were adversely affected by a change in policy on imports of pine.

This saw Pine timber being imported from New Zealand the past year.

Future Forests general manager, Masum Buksh, said this lead to major customers importing pine timber from New Zealand.

The company said the resulting pine timber imports damaged the company’s sales and together with log supply issues in Ra province, has resulted in sawmill operations being suspended in the medium term.

Feedback:  rachnal@fijisun.com.fj

 




Fiji Sun Instagram
Subscribe-to-Newspaper
error: