Between 30 April 2013 and 31 October 2013 Cambium Global Timberland’s net asset value per share fell from 59p to 48p. As previously announced (in October 2013) Cambium wrote down the value of its Tarrangower property in Australia and its properties in Hawaii. At the time they said they might have to make a provision against the value of their 3R Tocantins property in Brazil; the Board has now decided to write down the value of that property by £1.95m.
On 22 January 2014 the Board found out that, without prior approval by the Board or notice to he company, Colin McGrady had acquired 100% control of the company’s asset manager, Cogent Partners LP. This has put the company into breach of it regulatory approval in Jersey. The Board is in discussions with the Jersey Financial Services Commission and the company’s professional advisers.
The Hawaiian properties were written down because of falling timber prices and higher costs for harvesting and hauling. The Australian property was written down because the timber has not been growing well or fast and the plantation is located well away from end users. The reasons behind the write down of the Brazilian property seem opaque.
In October the Board announced “an independent assessment of the property providing security to cover the lien on the 3R Tocantins asset in Brazil” was talking place. Today the board say “As a result of the Board’s investigation of the 3R Tocantins position, it has been decided at this stage to make a provision of GBP1,950,948 in the unaudited condensed interim financial statements. This is included in the published NAV. The investigation continues and is not yet complete. Its scope has been expanded to identify how the situation requiring the need for the provision arose and what remedies may be available to the Company”