TIM 0.00% 4.4¢ timbercorp limited

SHAW: 2002 Results Reasonable

  1. zwu
    2,435 Posts.
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    ***SHAW Analyst Comments: Timbercorp's 02 project sales
    *** July 2, 2002
    *** 2002 Project sales

    Timbercorp (TIM) has advised that sales under various projects increased by 7% to $51m, comprising 1,100ha ($27m) of almonds, 462ha ($11.6m) of olives & 3,200 ha ($12.7m) of timber.

    Reasonable result

    While a reasonable result, was below the total offering & expectations of around $55m, with excess applications for almonds & some leakage to Macquarie Protected Equity Loan & Gunns Plantations in last weeks. Is still positive for TIM going forward, as:

    1) It adds $14m pa to the annuity style income in 03 & 04 increasing the proportion of total revenue from 39% to 50 -55% of total revenue. This will increase beyond 05 with commercial production of Almonds (3.0% of gross crop value) & Olives (3.5%).

    2) The sales removed $25m of the $30m in unsold developments as at 30 June from the Balance Sheet, strengthening cash flow & reducing gearing.

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