Future Forests Incurs $5.3m Loss
SAYS TROPICAL CYCLONE WINSTON HAS HAD SIGNIFICANT IMPACT ON THE COMPANY’S OPERATIONS AND ASSETS
The losses incurred by Future Forests (Fiji) Limited has widened significantly for its financial year ended June 30, 2016 mainly due to the impact of Tropical Cyclone Winston.
The company posted a net loss of $5.33 million compared to $383,207 for the past year.
Included in the net loss for 2016 was a writedown of plantations of $4.66 million against a gain in fair value of plantation of $148,115 in 2015. Its revenue also dropped to $321,194 compared to $450,645 the previous year.
Future Forests is Fiji’s first commercial hardwood forest plantation company specialising in the growing of teak trees (Tectona grandis) for timber production and exports.
The sale of teak seedlings is the other core activity of the company.
The company, in its financial statement disclosure said Tropical Cyclone Winston has had significant impact on the company’s operations and assets. Given the results, the Directors recommended that no amounts be paid as dividend in respect of the year ended June 30, 2016. The Directors also recommended that no amounts be transferred to reserves for the same year ended.
Independent auditor report
Meanwhile, company auditors, PricewaterhouseCoopers (PwC) drew attention to the company having negative cash flows from operating activities of $158,945, and making an operating loss of $5,334,440 for the year ended June 30, 2016.
It also drew attention that as at year end, Future Forests’ current liabilities exceeded its current assets by $1,087,596 and the company has net liabilities of $1,681,072 as at that date.
PwC stated: “This, along with other matters, indicate the existence of a material uncertainty that may cast significant doubt about the company’s ability to continue as a going concern.”
However, it said PwC’s opinion is not qualified in respect of this matter.