Forestry Tasmania's 2014/15 Annual Report released, 27 October 2015

Forestry Tasmania’s financial position improves

 

Forestry Tasmania today released its Annual Report which provides a summary of its performance against its corporate objectives, including its financial performance, for the 2014/15 financial year. The report was tabled in Parliament today and is available on Forestry Tasmania’s website.

 “We are pleased to report that Forestry Tasmania has improved its underlying financial performance over the past financial year while also supplying our customers with about 1.5 million tonnes of wood products,” said Mr Bob Annells, Chairman of Forestry Tasmania’s board. 

“While we recognise that there is still further work to be done to achieve financial sustainability, the results for the year show that the business is moving in the right direction.”

The report details significant improvements totaling $20.3 million compared to last financial year, including a $7.3 million increase in domestic and export revenue, and $13 million in cost reductions. These reductions occurred in salaries, harvesting and transport, roading, pruning and office expenses.

As a result of these improvements, and an equity transfer of $30 million on 1 July 2015 that was used to repay borrowings, Forestry Tasmania has commenced the 2015/16 financial year with effectively nil debt.

“This is a very good position on which the business can build as it moves toward achieving financial sustainability.”

“Even with the changes that have already been implemented, we recognise that this will not be easy and there is significant further work required to achieve this goal.” 

Forestry Tasmania has been working closely with the Government to undertake significant analysis to inform implementation of the agreed directions arising from the Government’s review of Forestry Tasmania, including the development of a new operating model for Forestry Tasmania.

Forestry Tasmania also remains strongly committed to continuing its journey towards receiving FSC certification.

“We look forward to working with all of Forestry Tasmania’s employees, customers, contractors and other stakeholders as we continue the necessary process of transition to a new sustainable future operating model,” said Mr Annells.

ENDS 27 October 2015