Published: 12 November 2013

Timber processor Border Timbers is critically examining all aspects of its business to reduce costs and turnaround its fortunes in the wake of declining profits.

The timber producer and processor saw profits tumbling by 39 percent to $1,1 million in the full year to June 2013 on the back of a 47 percent increase in finance costs.

The cost of funding went up to $2,8 million during the period under review while revenue also trended down by 14 percent to $28 million as volumes fell by 39 percent.

Border Timbers chairman Mr Kenneth Schofield said the group's financial performance for the previous financial period showed that the company faced huge economic challenges that needed to be addressed.

"Your group has set about addressing these problems by dealing aggressively with units that are not profitable, relooking at every aspect of how we operate and whether best placed to operate the different working of the business," Mr Schofield.

The firm has been stung by high cost of labour and says while its workers deserve better salaries, they should be affordable and supported by productivity or direct cost.

"We are achieving neither and it is irresponsible of those involved in the wage decisions to award wages that are quite simply miles out of the country's, let alone, this group's affordability.

"If structural issues such as lack of power, usurious financing and wanton destruction of the company's property cannot be addressed then the cost of labour has to be reduced if the group is to survive," he said.
- herald

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