State-owned commercial forestry company South African Forestry Company Limited (Safcol) said yesterday that, following the first 12 months as a restructured group, it achieved a profit before tax of R140,2-million for the year ended June 30, 126% up on the previous year's R62,1-million.

This includes a number of nonrecurring items, such as profits on the sale of some assets, a government transfer payment and the equity-accounted profits of Singisi and SiyaQhubeka. The group records a net profit of R104-million.

Revenue from sales for the year amount to R677-million, down from R692-million during the 2002 financial year. Earnings per share have been calculated at 32,7 cents, a 214,4% improvement on 2002.

“We have had an extraordinary and successful year producing record bottom-line profit. This has been achieved in the face of heavy restructuring costs and a skeleton senior management team, and without the presence of our Kwazulu-Natal and Transkei packages, which have been sold,” said Safcol chairperson David Gevisser.

The Komatiland transaction is on track, with the preferred bidder – the Bonheur consortium – announced last week.

The Bonheur consortium, which will acquire 75% of Komatiland Forests, comprises Imbokodvo Lemabalabala Forestry (30%), a wholly-owned subsidiary of Imbokodvo Lemabalabala Holdings (IL Holdings).

IL Holdings is owned by Koti Investments (30%) and the Traditional Authorities Investment Company (70%). It is expected that the sale will be completed in the first half of 2004.

The Londoloza-Paharpur consortium was appointed as the reserve bidder.

The R570-million Komatiland package comprises 200 000 ha of forestry plantations and indigenous vegetation areas, two sawmills, a veneer slicing plant, a log export facility and a range of eco-tourism facilities.

Owing to its size, it is not expected that the profitability and value of the Komatiland package will be materially affected in the longer term by the recent and devastating spate of forest fires in the area.

Further to the privatisation process, the Amatola Forestry Company deal is expected to be finalised soon, while the MTO Forestry negotiations are underway.

“The outlook for the next financial year is not as promising and will not be nearly as profitable as 2003. We suffered serious losses as a result of devastating fires in the Amatola and Komatiland areas. The strong rand has also hit our export profits and had a significant indirect impact on the local market,” added Gevisser.