FUTURE Forests Fiji Limited recorded a net profit of $951,270 for the financial year ending June 30, 2012.
The announcement sounded a better performance after the company incurred a loss of $319,113 for the previous six-month period.
Directors Dick Watling and Peter McPherson signed off the financial results attributing the improved profit status to the increase by $1.92million in the value of the company's teak plantations.
"This was driven by plantings in the year in excess of 80 hectares, bringing the total teak plantation area to 204 hectares. As the gain in the plantation valuation is unrealised, there is no tax to pay," the company said.
"Total assets now stand at $6.94m and shareholders equity has increased by $1.60m to stand at $5.08m. This has resulted in a net tangible asset backing of 24 cents per share. Another feature of the balance sheet is that the converting notes issued as part of the successful IPO in November, 2011 have largely been treated as a term liability due to recognition of the relevant international accounting standards resulting a gearing ratio of 30 per cent."
The company said over the next five years, the equity portion of the converting notes would increase while reducing the effect on the gearing of the company.