![](/cdn/assets/images/search/clock.png)
We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Highland Timber | LSE:HTB | London | Ordinary Share | GB0000429497 | ORD 50P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 107.00 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
HIGHLAND TIMBER PLC PRELIMINARY ANNOUNCEMENT OF AUDITED RESULTS The Directors announce the audited statement of results for the year to 31 December 2002 as follows: PROFIT AND LOSS ACCOUNT Restated Year ended Year ended 31 December 2002 31 December 2001 Before Diminution Total Before Diminution Total diminution in value diminution in value in value of forests in value of forests of forests of forests £'000 £'000 £'000 £'000 £'000 £'000 Turnover 1,604 - 1,604 1,097 - 1,097 Cost of sales (1,175) - (1,175) (885) - (885) Gross profit 429 - 429 212 - 212 Operating expenses (513) (650) (1,163) (427) 106 (321) Operating (loss)/ (84) (650) (734) (215) 106 (109) profit Interest receivable - - - 5 - 5 Interest payable (209) - (209) (217) - (217) (293) (650) (943) (427) 106 (321) Other income 33 - 33 - - - (Loss)/profit on (260) (650) (910) (427) 106 (321) ordinary activities before taxation Taxation - - - - - - Retained (loss)/ (260) (650) (910) (427) 106 (321) profit for the period (Loss)/profit per (2.94)p (7.36)p (10.30)p (4.83)p 1.20p (3.63)p share There is no difference between the loss on ordinary activities before taxation and the retained loss for the year stated above, and their historical equivalents STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES Restated Year ended Year ended 31 December 2002 31 December 2001 Total Total £'000 £'000 Loss for the financial (910) (321) period Prior year adjustment (176) - Total gains and losses recognised since (1,086) (321) last financial statements BALANCE SHEET Restated As at As at 31 December 31 December 2002 2001 £'000 £'000 Fixed assets Tangible fixed assets 10,592 12,012 Current assets Debtors: amounts falling due within one year 169 39 Creditors: amounts falling due within one year 5% Convertible Unsecured Loan Stock (1,350) - Other creditors (1,578) (1,458) Net current liabilities (2,759) (1,419) Total assets less current liabilities 7,833 10,593 Creditors: amounts falling due after more than one year Term bank loan (750) (750) 5% Convertible Unsecured Loan Stock - (1,850) (750) (2,600) Net assets 7,083 7,993 Capital and reserves Called up share capital 4,416 4,416 Share premium account 5,285 5,285 Profit and loss account (2,618) (1,708) Total equity shareholders' funds 7,083 7,993 CASH FLOW STATEMENT Restated Year ended Year ended 31 December 31 December 2002 2001 £'000 £'000 Net cash inflow from operating activities 637 424 Return on investments and servicing of finance * Interest received - 5 * Interest paid (209) (217) Net cash outflow from return on investments (209) (212) and servicing of finance Capital expenditure * Purchase of tangible fixed assets - (971) * Proceeds of sale of fixed assets 1 - Net cash inflow/(outflow) from capital 1 (971) expenditure Net cash inflow/(outflow) before financing 429 (759) Financing * Redemption of part of the 5% Convertible (500) - Unsecured Loan Stock * Term bank loan - (875) Net cash outflow from financing (500) (875) Decrease in cash and overdrafts in the year (71) (1,634) At 1 Jan 2002 Cashflow At 31 Dec 2002 £'000 £'000 £'000 Analysis of net debt Cash at bank, in hand and (1,389) (71) (1,460) overdrafts Debt due in less than one year - (1,350) (1,350) Debt due after more than one year (2,600) 1,850 (750) Net debt (3,989) 429 (3,560) 2002 2001 £'000 £'000 Reconciliation of net cash flow movement to debt Decrease in cash and overdrafts in the year (71) (1,634) Cash inflow from debt financing of under 1 year (1,350) - Cash outflow from debt financing of over 1 year 1,850 875 429 (759) Net debt brought forward (3,989) (3,230) Net debt carried forward (3,560) (3,989) Notes 1 The above financial information does not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985. Full accounts for the year ended 31 December 2001, on which the auditors, Grant Thornton, gave an unqualified report, have been delivered to the Registrar of Companies. Statutory accounts for the year ended 31 December 2002 will be delivered to the Registrar of Companies in due course. 2 In compiling the financial statements for the year ended 31 December 2002 the Company has changed its accounting policy in respect of cost of sales. The previous policy assumed that the replanting and growth of the remaining crops after felling would generally maintain the value of the forests and allow regular harvesting without depreciation. This meant that when trees were felled there was no automatic transfer to cost of sales to match the income but where the remaining forest's value fell below historic cost then there was a charge made to exceptional items of the diminution of the value of the forest. The new policy allocates an equivalent proportion to the related sale of the original cost of the forest as a cost of sale and will more accurately match the cost of sales with turnover. Had the accounting policy not been changed, the loss for the year to 31 December 2002 would have been £51,000 lower, and for the year ended 31 December 2001, the loss would have been £157,000 lower. The impact of the change in accounting policy on the cumulative reserves at 1 January 2001 is to decrease the reserves by £19,000. CHAIRMAN'S STATEMENT I began my statement last year by pointing out that, although 2001 had been a disappointing year for UK investors with the All-Share Index falling by 15%, forestry had proved to be a relatively stable investment. As you are all aware 2002 was an even worse year for equity markets with the All-Share Index falling by a further 25% as investors became more concerned about uncertainties over the prospects for many of the world's leading economies and the dangers of a war against Iraq. Timber markets in the UK remained depressed. The FIM Timber Index fell by 13.1% during the year. The decline in small roundwood prices has been even more marked as the pulp industry became more reliant on recycled material. The picture from New Zealand was more encouraging and timber prices expressed in the local currency have strengthened modestly. Exports to Asia, and particularly to China and Korea, have increased and there has been a welcome improvement in the exchange rate. Accounting Policy As was announced in the Interim Report, your Board has decided to make a change in the accounting policy for the Company's freehold properties. When timber is felled the proportion of the original purchase price which is attributable to the trees actually cut down is now included in the Cost of Sales. Each year's reported profits are therefore reduced and the value of the woodland assets in the balance sheet correspondingly reduced. This change requires the results for previous years to be restated to allow valid comparisons to be made. However, shareholders should note that the change makes no difference to the estimated net asset value of the Company's shares which I report to you each year based on valuations of the forests. Results Turnover reached a record level of £1.6 million, some 46% more than the previous year. Biological growth in the Company's forests has continued to be very satisfactory and more felling will take place as soon as better prices can be achieved in the UK. Due to the poor timber prices in the UK, it has been necessary to recognise some diminution in the value of the UK forests, amounting to £650,000. The operating loss before this item was £84,000 compared with a restated loss of £ 215,000 for the previous year. After taking the diminution into account, the loss before tax amounted to £910,000 or 10.30p per share compared with a restated loss of £321,000 or 3.63p per share. The Company's accounting policies do not, of course, permit increases arrived at by valuation to be reflected in the balance sheet. These are however reflected in the table of valuations included in this Statement. Managers The name of our managers in New Zealand has been changed from TFF Limited to Renewable Resources Limited, to make clearer the link with their US parent company, GMO Renewable Resources LLC. Borrowings During the year, £500,000 5% Convertible Unsecured Loan Stock 2003 was redeemed at 93p per £1 Stock which, after expenses, gave the Company a profit of £ 33,000. The remaining £1,350,000 of Stock becomes repayable on 30 June 2003. To the extent that the sum due on the redemption of the Stock is not available from current cash resources, the Company's UK bankers have agreed in principle to increase the overdraft to cover the balance. Valuation of Assets In accordance with our well-established practice, the Directors give their best estimate of the value of the Company's forest assets in the table below. Independent valuations are obtained for each forest once every three years. This year we received an independent valuation for one UK property and the Managers gave opinions on value of all the other properties. The total value was £12,270,000 which gives an estimated net asset value of 99.2p per share compared with 101.2p per share last year. Value of Forest Assets at 31 December 2002 Historic Balance Valuation cost sheet value £'000 £'000 £'000 UK Freehold forests (6 properties) 7,809 6,795 6,831 New Zealand Freehold forests (5 properties) 2,306 2,230 2,763 Forestry rights (5 properties) 1,586 1,567 2,676 3,892 3,797 5,439 TOTAL (16 properties) 11,701 10,592 12,270 For next year's Report, we expect to have independent valuations of five UK properties and three New Zealand properties. Corporate Strategy The Company's policy continues to be to seek to achieve the highest possible level of total return for shareholders. Although there are no current plans for expansion, the Board feels it is important to have the flexibility to act at short notice if any opportunity arises which is deemed to be in the best interest of shareholders. Accordingly, resolutions to empower the Board to allot shares are being put forward again at the Annual General Meeting. Outlook Underlying the financial results for 2002 are very different stories from the UK and New Zealand. In the UK, the potential supply of timber from domestic and other European sources has, at least in the short term, outstripped demand. Timber prices have therefore been weak and this has also affected the capital value of forest assets. In New Zealand, on the other hand, local and overseas demand for timber has been relatively strong and prices have responded favourably. This factor, together with the faster natural growth rate of the trees, has been responsible for a healthy increase in forest valuations. The move in the exchange rate from New Zealand $3.44 to New Zealand $3.06 to pound sterling has further enhanced the valuations in pound sterling terms. Overall results are therefore a combination of disappointing figures from the UK and more encouraging ones from New Zealand. UK shareholders are thus continuing to benefit from the Company's policy of geographic diversification. One of the problems facing the Board over the next year is what recommendation to put to shareholders when the future of the Company is determined at the Annual General Meeting in 2004. In this connection, it is reassuring to know that the physical growth of our trees continues at a good rate and that the Company's assets are being well managed by our representatives in the UK and in New Zealand. Shareholders should also note that several of our forests are approaching maturity so whenever prices recover we can supply timber on profitable terms. .................******. I J S Henderson Chairman 19 February 2003 END
1 Year Highland Timber Chart |
1 Month Highland Timber Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions