Integrated forestry company Willmott Forests said it achieved woodlot sales for the 2008/09 financial year but they were down from $95 million in the previous year due to forces beyond its control.
Of the $65.8 million of woodlot sales revenue excluding GST, $17.8 million will be recognised as at 30 June 2009 with the balance of $48 million carried forward into fiscal 2010.
The company expects to post a net profit after tax for fiscal 2010 in excess of the $11.3 million achieved in the previous corresponding period.
“We continue to build market share in the face of strong headwinds,” Willmott Forests chief executive Marcus Derham said.
“Our Woodlot sales result further underpins Willmott Forests’ commitment to a diversified product offering with multiple income streams predominantly based on our traditional long rotation softwood plantations.
“On the financial front, our conservative accounting policies and sound financial management of a strong asset base continues to deliver a profitable performance that adds to the net assets of the company.”
Willmott said it expects to generate new revenue in the first half of fiscal 2009 from its recently launched Premium Timberland Fund No. 1. The group said the product is ideal for the superannuation market due to its ongoing annuity income.
Separately, Gunns said its wholly-owned subsidiary, Gunns Plantations, achieved sales of around $45.5 million including GST across its full range of plantation forestry and walnut investment projects in the 2008/09 financial year.
“The sales have been achieved in challenging market conditions and I believe the result reflects the strength of the Gunns investment offering,” Gunns chairman John Gay said.
Willmott shares advanced 5.66 per cent to 56 cents and Gunns dropped 3.72 per cent to $1.035 in trading on Wednesday.
