Cambium Global Timberland : January 29 2021Interim Results

29 January 2021

Cambium Global Timberland Limited

(the "Company")

Net Asset Value, Interim Results

Net Asset Value

The Company announces that the Net Asset Value per share as at 31 October 2020 is 8.8p.

Interim Results

The Company announces that the Interim Report and Unaudited Condensed Consolidated Interim Financial Statements (the "Interim Report") for the six months ended 31 October 2020 are available and set out in full below.

An electronic copy of the Interim Report is also available on the Company's website at www.cambium.je.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Following the publication of this announcement, this inside information is now considered to be in the public domain.

For further enquiries please contact:

Chairman

Tony Gardner-Hillman

01534 486980

Broker and Nominated Adviser

WH Ireland Limited

James Joyce 020 7220 1698

Administrator and Company Secretary Praxis Fund Services (Jersey) Limited 01534 835835

Cambium Global Timberland Limited

Interim Report and Unaudited Condensed Consolidated Interim Financial

Statements

for the six months ended 31 October 2020

Chairman's statement

Assets and values

The Company's Net Asset Value per share ("NAVPS") as of 31 October 2020 is 8.8p, compared with 10.4p as at 30 April 2020, a decrease of 15.7% in the period.

The change in NAVPS comprised currency movements (-7.4%), net expenditure on forestry and other costs (-7.6%), and accrued interest on the loan from Peter Gyllenhammar AB (announced on 21 December 2017) (-0.7%).

It is pleasing that the land sale opportunities I previously reported have now concluded, leaving Cambium with only its interests in the Lizarda property (carried at nil value), the receivables to become payable over periods up to February 2023 under the announced land sales contracts, and its cash balances at bank. The Company is now in discussions with a potential purchaser of those interests. If that transaction concludes, the Board will convene a general meeting where it will propose the winding up of the Company, enabling the liquidator to return capital to shareholders via a distribution of the final net cash balance. In the Board's judgment, the likelihood of a liquidation and return of cash to shareholders, which has been the objective since 2013, is now sufficiently high and close at hand to require that financial statements be prepared on a non-going concern basis, which is the presentation now adopted. In the event the sale of the Company's remaining interests referred to above does not go ahead, the Board will re-visit this judgment and may decide to revert to a going concern basis of presentation for subsequent financial statements.

All in all, persistence in markets which were difficult even in normal times has enabled the Company to reach the end of its journey to sell its properties. The Board is now working to close the final transaction mentioned above, to enable the final cash distribution to shareholders to take place sooner rather than later.

As at the period end the Company and its subsidiaries had cash reserves of £1,013,276.

Costs

New expenditure on properties has of course now been ended by land sales.

Administrative expenses are up 24% on the corresponding prior period (note 4), principally due to increased legal and administrative costs in Brazil.

However, forestry expenses (notes 5 and 6) again show a meaningful fall against the prior period, down 10%, demonstrating the ongoing effort to curtail costs that continued until the end, but in a way that continued to protect the Group's remaining assets until disposal.

The net result, allowing for the impact of currency fluctuations, is that total costs, including finance costs, for the period in Sterling terms amounted to £0.64 million, as compared with £0.59 million for the same period last year.

Conclusions

I am pleased with the events over the period, and since the period end, and I now look forward to delivering my next, and likely to be my final, report.

Antony R Gardner-Hillman

Chairman

29 January 2021

Operations Manager's report

For the six months ended 31 October 2020

Total returns for the period covered by these financial statements, including translation differences, were a loss of £1.2 million compared to a loss of £0.9 million in the corresponding prior year period. The portfolio returns continue to be primarily impacted by operating costs and foreign exchange losses arising on translation.

Below is a summary of the results by geographic area.

Brazil

The Brazilian portfolio represented 100% of the total physical assets at the 31 October 2020. Subsequently all the assets are now contracted for sale with all payments being received as anticipated.

At the 3R plantation, expenditure continued on the good 1,600 hectares of coppice regrowth which are growing well and demonstrate the potential of the site when planted with the right clone and well tended. Fortunately at 3R, the local forestry company decided that they would rather purchase than lease the property and the sale closed after the period end. As the purchaser is under the Brazilian equivalent of Chapter 11 re-organisation, a sale with a single purchase payment was negotiated, and that has been received in full.

In Minas Gerais, in line with payment terms under pre-existing wood sale agreements, payments were received for harvesting at Agua Santa and Ribeirao do Gado and these contracts were subsequently superseded by contracts with the same parties agreeing also to purchase the land, with payments over the same periods. Payments are no longer linked to charcoal prices. At Forquilha the standing wood was sold during the period, with harvesting and payments due over two years. Subsequently, and as announced, the land at Forquilha has also been sold with payments over two years, and initial payments have been received.

Expenditure on security, fire protection and insurance, required prior to the sales to protect the Company's assets, has now ceased.

United States - Hawaii

Cambium previously sold its plantation leases by way of assignment, and the terms of the landlords' consents to the lease assignments required a sum equal to the balance of outstanding lease rental payments to be placed in escrow by Cambium, as security to the landlords that lease rental payments would be received when due from the assignee. Cambium recorded the escrow balance as an asset, which represented less than 1% of the total assets. The assignee of the plantation leases has continued to pay the rent to the landlords, so allowing the release of escrow fund to Cambium as scheduled. Subsequent to the period end the final amounts have been released from escrow and no balances are outstanding.

Conclusion

The focus during the period was to complete the realisation of the company's assets. Good progress was made in the period and subsequently the process has been completed, so turning the physical assets into defined cash flows over periods up to February 2023.

Robert Rickman

Operations Manager

29 January 2021

Unaudited condensed consolidated interim statement of comprehensive income For the six months ended 31 October 2020

For the six	For the six
months ended	months ended
31 October	31 October
2020	2019

		Unaudited	Unaudited
Continuing operations	Notes	£	£
Finance costs		(58,610)	(57,891)
Net foreign exchange (loss)/gain		(278)	1,349
Net finance costs		(58,888)	(56,542)
Administrative expenses	4	(239,703)	(228,208)
Loss for the period from continuing operations		(298,591)	(284,750)
Discontinued operations
Loss on disposal of assets held for sale		-	(69,086)
Administrative expenses	4	(105,411)	(49,882)
Forestry management expenses	5	(1,068)	(5,013)
Other operating forestry expenses	6	(225,990)	(247,226)
		(332,469)	(358,409)
Operating loss from discontinued operations		(332,469)	(371,207)
Finance costs		(6,844)	(970)
Net foreign exchange (loss)/gain		(63,567)	2,546
Net finance (costs)/income		(70,411)	1,576
Loss before taxation from discontinued operations		(402,880)	(369,631)
Taxation charge	7	-	-
Loss for the period from discontinued operations		(402,880)	(369,631)
Total loss for the period		(701,471)	(654,381)
Other comprehensive loss
Items that are or may be reclassified to profit or loss, net of tax
Foreign exchange loss on translation of discontinued foreign operations	13	(505,712)	(256,244)
Other comprehensive loss for the period		(505,712)	(256,244)
Total comprehensive loss for the period		(1,207,183)	(910,625)
Basic and diluted loss per share	8	(0.95) pence	(0.89) pence
Basic and diluted loss per share from continuing operations	8	(0.40) pence	(0.39) pence
Basic and diluted loss per share from discontinued operations	8	(0.55) pence	(0.50) pence

All losses from continuing and discontinued operations are attributable to the equity holders of the parent Company. There are no minority interests.

Unaudited condensed consolidated interim statement of financial position At 31 October 2020

		31 October	30 April
		2020	2020
		Unaudited	Audited
	Notes	£	£
Non-current assets
Trade and other receivables	12	747,729	1,441,991
Current assets
Assets held for sale	11	4,480,262	5,608,306
Trade and other receivables	12	2,089,349	1,816,048
Cash and cash equivalents		1,013,276	625,612
Total current assets		7,582,887	8,049,966

Total assets		8,330,616	9,491,957
Current liabilities
Liabilities held for sale	11	56,244	46,269
Loan payable to related party		1,709,367	1,652,347
Trade and other payables		68,502	89,655
Total liabilities		1,834,113	1,788,271
Net assets		6,496,503	7,703,686
Equity
Stated capital	14	2,000,000	2,000,000
Distributable reserve	15	82,603,312	82,603,312
Translation reserve	13,15	(943,441)	(437,729)
Retained loss		(77,163,368)	(76,461,897)
Total equity		6,496,503	7,703,686
Net asset value per share	9	8.8 pence	10.4 pence

These unaudited condensed consolidated interim financial statements were approved and authorised for issue on 29 January 2021 by the Board of Directors.

Antony R Gardner-Hillman	Mark Rawlins
Chairman	Director

Unaudited condensed consolidated interim statement of changes in equity For the six months ended 31 October 2020

	Share	Distributable	Translation	Retained
Unaudited	Capital	reserve	reserve	loss	Total
	£	£	£	£	£
For the six months ended
31 October 2020
At 30 April 2020	2,000,000	82,603,312	(437,729)	(76,461,897)	7,703,686
Total comprehensive loss for the period
Loss for the period	-	-	-	(701,471)	(701,471)
Other comprehensive loss
Foreign exchange loss on translation of
discontinued foreign operations (note 13)	-	-	(505,712)	-	(505,712)
Total comprehensive loss	-	-	(505,712)	(701,471)	(1,207,183)
At 31 October 2020	2,000,000	82,603,312	(943,441)	(77,163,368)	6,496,503
	Share	Distributable	Translation	Retained
Unaudited	Capital	reserve	reserve	loss	Total
	£	£	£	£	£
For the six months ended
31 October 2019
At 30 April 2019	2,000,000	82,648,243	2,802,225	(73,503,073)	13,947,395
Total comprehensive loss for the period
Loss for the period	-	-	-	(654,381)	(654,381)
Other comprehensive loss
Foreign exchange loss on translation of
discontinued foreign operations (note 13)	-	-	(256,244)	-	(256,244)