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Fiji Time: 6:32 PM on Thursday 24 April

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$5.03m wood

Timoci Vula
Thursday, November 08, 2012

EXACTLY 14 days before it celebrates its first birthday on the South Pacific Stock Exchange (SPSE), teak producers Future Forests (Fiji) Ltd (FFF) has released its first annual report since becoming a public-listed company.

The report highlighted, not only growth in the value of teak, but it has also indicated its will to expand, with finalised plans already to begin saw milling operations.

Its report, for the 2011 to 2012 financial year, released by the SPSE yesterday, revealed that teak plantations was valued at $5.03 million as at June 30 this year, compared to $3.11m for last year. Report highlights noted that unrealised profit for the year in review at $951,270.

The report highlighted that at the initial public offer (IPO), FFF had raised $1.84m new capital from the sale of ordinary shares and convertible notes.

FFF chairman Kaliopate Tavola said after placing future interest payments on the convertible notes in term deposits, the net proceeds from the IPO was $1.35m.

Mr Tavola said although the IPO raised significant new capital to be applied to establishing new plantations and managing existing plantations, it fell short of the minimum IPO target of $4m.

As a result, he said they had to initiate a project to continue capital raising after the IPO was completed.

He said the board was restructured to create an independent board of directors with a range of professional expertise.

"In the 2011-2012 financial year, new teak plantations were established, significant planting land secured, the nursery saw further improvements and FFF teak wood product prototypes manufactured," Mr Tavola said, and adding that this had set the platform for the company's future development.