Cambium Globaltimber Interim Results

Date : 01/18/2008 @ 12:08PM
Source : UK Regulatory (RNS and others)
Stock : Cambium Globaltimber (TREE)
Quote : 75.25  0.0 (0.00%) @ 1:00AM
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Cambium Globaltimber Interim Results

RNS Number:1283M
Cambium Global Timberland Limited
18 January 2008



Cambium Global Timberland Limited
Condensed Consolidated Interim Financial Statements
31 October 2007
(Unaudited)




Chairman's Statement


Dear Shareholders,

I am pleased to present the first unaudited interim Report and Accounts for the
Cambium Global Timberland Ltd ("The Company") for the period ended 31st October
2007. Following the successful placing by Landsbanki Securities (UK) Limited and
admission to AIM on 6th March 2007, the Company raised a total of £104,350,000
(net of expenses) to pursue its investment objective of acquiring a balanced and
diversified portfolio of global forestry interests.

The Company's investment Manager, CP Cogent Asset Management LP ("Cogent") has
been working to execute our strategy over the period since March and as at this
date has closed on three investments described more fully in the Investment
Manager's Report which follows. In addition, a strong pipeline of potential
investments has been identified and is being worked through. Cogent continues to
expand its team of timber professionals and to extend its search for
opportunities for the Company.

 I am pleased to report that the final results of the period ended 31st October
2007 are in line with the expectations of the Board and reflects the relatively
early stage of the Company development.

The Company is, I believe, well positioned to provide investors with a balanced
exposure to the attractive asset class of Global timber and I look forward to
reporting further progress in the Annual Report and Accounts for the year ending
30th April 2008.

Shareholders may wish to visit our website at www.cambiumfunds.com for
additional information on the Company.


Donald L Adamson

Chairman





Investment Manager's report

We are pleased with the progress we have made for Cambium so far on the
development of the portfolio.  Through 31 October, 2007 Cambium had committed
approximately 23% of its capital to three forestry properties.  We continue to
expand our sourcing relationships and to see opportunities for investment that
are compatible with the original investment thesis for the vehicle.  We have
investments in our pipeline in each geographical region of interest and expect
to complete due diligence on some of these opportunities late in 2007 or early
in 2008.

The first investment we completed for Cambium was a "greenfield" opportunity in
northern New South Wales, Australia.  The investment highlights the
environmental optionality that is imbedded in owning timberland.  The
reforestation project is designed to capitalize on revenue from timber in the
long term and carbon credits in the shorter term via the NSW Greenhouse Gas
Abatement Scheme (GGAS).  In addition a grant was secured from the Local
Catchment Authority for biodiversity conservation and salinity control services
that are provided by the estate. We have begun reforestation and the first tree
was planted on the estate in October.

The second property consists of approximately 22,000 acres of mature pine
plantation that is located in the established wood markets of east Texas.  The
timber on the property has a well balanced age distribution suited for
sustainable yield.  Income will be derived from the property through sustainable
timber harvests, opportunistic land sales of tracts with higher value uses, and
hunting lease income.

The third investment is a leasehold interest located on the south east coast of
the Big Island of Hawaii.  The estate consists of 3,700 acres of Eucalyptus
grandis plantation.  A wood supply agreement for the timber on the property has
been negotiated with the developer of a sliced veneer mill.  The investment
allows for Cambium to participate in the further development of the forest
products industry in Hawaii.

We have been expanding our networks of relationships into our targeted
geographic markets.  Our pipeline of opportunities has continued to evolve and
we continue to find opportunities that are consistent with the initial Cambium
objectives.  The progress we have made is consistent with the eighteen-month
initial investment period for the fund.

Lastly, we are pleased that we have been able to add to our timber investment
team.  Richard Standeven joined the team from Temple-Inland, a large US timber
company.  Rich brings 23 years of timber experience to us and was most recently
responsible for improving overall per acre cash performance of a 1.6 million
acre forest portfolio through acquisitions, trades and divestitures.

We are pleased with the progress that we have made to date and look forward to
updating you on the further development of the portfolio at our 30 April, 2008
year end.



Condensed Consolidated Income Statement
for the period ended 31 October 2007
(Unaudited)

                                                                          For the period from
                                                                          19 January 2007 to
                                                                            31 October 2007
                                                           Notes                   £

Revenue                                                     15                 322,219
Cost of sales                                                                 (283,078)

Gross profit                                                                    39,141

Gain from fair value adjustments on land and plantations     5               2,719,236

Other income
                                                                                    247
Other expenses                                                                     (434)
Administrative expenses                                                      (1,327,854)
Establishment expenses                                                       (3,391,375)
Results from operating activities                                            (1,961,039)

Finance income                                                                3,359,762
Finance expenses                                                                 (2,567)
Net finance income                                                            3,357,195

Net foreign exchange losses                                                    (555,033)
Loss from fair value adjustments on property, plant and      6                 (257,064)
equipment
Gain from fair value adjustments on forward foreign currency                  1,044,719
contracts

Profit for the period                                                         1,628,778

Earnings per share - basic and diluted                                             2.67 pence


Condensed Company Balance Sheet
At 31 October 2007
(Unaudited)

                                                                             31 October 2007
                                                            Notes                   £

Non current assets
Investments in special purpose entities                           4            16,696,925


Current assets
Trade and other receivables                                       8               467,842
Inter-company advances                                            9             4,505,149
Available for sale investments                                   10             8,908,900
Forward foreign currency contracts                               11            22,563,863
Cash and cash equivalents                                        12            72,950,616

                                                                              109,396,370

Total assets                                                                  126,093,295

Current liabilities
Bank overdrafts                                                                      (120)
Trade and other payables                                         13               (88,211)
Forward foreign currency contracts                               11           (21,519,144)
                                                                              (21,607,475)

Total liabilities                                                             (21,607,475)


Net assets
                                                                              104,485,820


Equity
Stated Capital Account                                           14             2,000,000
Distributable reserve                                            14           102,350,000
Revaluation reserve                                                               (25,140)
Retained earnings                                                                 160,960
Total equity                                                                  104,485,820


Condensed Consolidated Balance Sheet
At 31 October 2007
(Unaudited)
                                                                 
                                                                           31 October 2007
                                                                  Notes            £
Non current assets

Plantations                                                           5
                                                                             22,078,126
Property, plant and equipment                                         6
                                                                             402,546
Intangible assets                                                     7
                                                                             115,535

                                                                             22,596,207

Current assets
Trade and other receivables                                           8
                                                                             477,629
Available for sale investments                                       10
                                                                             8,908,900
Forward foreign currency contracts                                   11     22,563,863
Cash and cash equivalents                                            12     73,348,802
                                                                           105,299,194

Total assets                                                               127,895,401

Current liabilities
Bank overdrafts                                                                   (120)
Trade and other payables                                             13       (357,751)
Forward foreign currency contracts                                   11    (21,519,144)
                                                                           (21,877,015)

Net assets                                                                 106,018,386

Equity
Stated Capital Account                                               14      2,000,000
Distributable reserve                                                14    102,350,000
Revaluation reserve                                                             45,958
Currency translation reserve                                                    (6,350)
Retained earnings                                                            1,628,778
Total equity                                                               106,018,386

Condensed Consolidated Statement of Changes in Equity
For the period ended 31 October 2007
(Unaudited)

                                             Stated     Distributable  Translation Revaluation
  Retained
                                            Capital        Reserve       reserve     reserve  
  Earnings      Total
                                               £              £             £           £ 
          £           £

At 19 January 2007                                    -              -           -           
-           -           -

Net profit for the period                             -              -           -           
-   1,628,778   1,628,778

Issue of ordinary share capital,
net of issue costs                          104,350,000              -           -           
-           - 104,350,000

Reduction of stated capital account       (102,350,000)    102,350,000           -           
-           -           -
(note 14)

Currency translation differences                      -              -     (6,350)           
-           -     (6,350)

Revaluation of intangible assets                      -              -           -      
71,098           -      71,098
Revaluation of available for sale                     -              -           -    
(25,140)           -    (25,140)
investments

At 31 October 2007                            2,000,000    102,350,000     (6,350)      
45,958   1,628,778 106,018,386






Condensed Consolidated Cash Flow Statement
For the period ended 31 October 2007
(Unaudited)

                                                                                  31 October
2007
                                                                                         £
Cash flows from operating activities
Operating profit for the                                                               
(1,961,039)
period

Adjustments for:
         Gain on revaluation of land and plantations                                   
(2,719,236)
         Depreciation                                                                         
 141
         (Increase) in trade receivables                                                  
(63,040)
         Increase in payables                                                              
357,751
         Foreign exchange loss                                                           
(561,384)
                                                                                       
(2,985,767)

Net cash from operating activities                                                     
(4,946,807)

Cash flows from investing activities
Purchase of property, plant and equipment                                                
(659,751)
Purchase of land and plantations                                                      
(19,274,668)
Reforestation costs                                                                       
(84,222)
Purchase of intangible assets                                                             
(44,436)
Purchase of available for sale investments                                             
(8,934,040)
Net cash used in investing activities                                                 
(28,997,117)

Cash flows from financing activities
Net proceeds from the issue of share capital                                           
104,350,000
Interest received                                                                        
2,945,173
Interest paid                                                                              
(2,567)
Net cash from financing activities                                                     
107,292,606


Net increase in cash and cash equivalents                                               
73,348,682
Represented by:
         Cash balances                                                                  
73,348,802
         Overdraft balances                                                                   
(120)
                                                                                        
73,348,682




Notes to the Condensed Consolidated Financial Statements
For the period ended 31 October 2007
(Unaudited)


1 General Information

     Cambium Global Timberland Limited (the 'Company') and its subsidiaries (the 'Group') was
established
     to invest in a global portfolio of forestry based properties which can be managed on an
     environmentally and socially sustainable basis. Assets will be managed for timber
production,
     environmental credit production or both. The Group currently owns forestry assets located
in
     Australia and the United States.

     The Company is a closed-ended property company with limited liability, incorporated in
Jersey, Channel
     Islands on 19 January 2007. The address of its registered office is PO Box 344, 5 Castle
Street, St
     Helier, Jersey, JE4 8UW.

     The Company has its primary listing on AIM, a market of the London Stock Exchange and a
dual listing
     on the Channel Islands Stock Exchange.

     These condensed financial statements have been approved by The Board of Directors on 18
January 2007.

2 Basis of accounting

     Basis of preparation

     The condensed financial statements have been prepared using accounting policies
consistent with
     International Financial Reporting Standards and in accordance with International
Accounting Standard
     34 'Interim financial reporting'.


     The condensed financial statements do not include all of the information and disclosures
required in
     annual financial statements.

     Significant accounting policies

     The condensed financial statements have been prepared under the historical cost
convention, except for
     the revaluation of certain assets and financial instruments.

     The following accounting policies have been applied consistently throughout the Group to
items that
     are considered material in the accounts:

     Property, plant and equipment
     Property, plant and equipment (with the exception of motor vehicles) is initially
recognised at
     purchase price plus any directly attributable costs.  It is subsequently remeasured to
fair value.
     The fair value of property, plant and equipment is determined on a six monthly basis by
independent
     external appraisal.  Revaluation gains are recognised in equity through the revaluation
reserve with
     losses that offset previous gains of the same asset charged against the revaluation
reserve directly
     in equity and all other revaluation losses recognised in the Income Statement.

     Motor vehicles are recognised at purchase cost less accumulated depreciation. 
Depreciation is
     provided at the rate of  12.5% per annum on a diminishing balance basis.


     Plantations
     Plantations are measured on initial recognition and at each Balance Sheet date at fair
value plus
     directly attributable costs.  Any changes in fair values are recognised in the Income
Statement.
     Plantations are derecognised on transfer of title, with any subsequent gains or losses
being recognised
     in the Income Statement.

     Intangible assets
     Intangible assets are initially recognised at cost and subsequently remeasured to fair
value.  Any
     resultant gains are recognised in equity through the revaluation reserve.  Any resultant
losses are
     recognised directly in the Income Statement unless there has been previous gains on that
asset which
     have been taken through the revaluation reserve, in which case these are cleared before
the balance is
     taken to the Income Statement.

     Inventories
     Inventories, comprising of plantation produce processed after harvesting, are measured at
net
     realisable value.  Net realisable value is the estimated selling price, less point of
sale costs.
     Changes in net realisable value are recognised in the Income Statement.

     Available for sale investments
     All quoted investments have been designated as available for sale.  Available for sale
investments are
     initially recognised on the date of purchase at cost being the fair value of purchase
consideration
     paid plus any incremental transaction costs incurred as part of the purchase.  They are
subsequently
     adjusted to fair value with any unrealised gains or losses being recognised in equity,
through the
     Statement of Changes in Equity.  The fair value is determined by reference to their
quoted bid price at
     the balance sheet date.  Investments are derecognised on their sale or maturity date with
cumulative
     gains and losses on derecognition being  transferred to the Income Statement.

     Purchases and sales of available for sale investments are recognised on the trade date,
the date on
     which the Group commits to purchase or sell the asset.

     The Group assess at each balance sheet date whether there is objective evidence that the
available for
     sale investments are impaired.  If any such evidence exists for available for sale
investments, the
     cumulative loss, measured as the difference between the acquisition cost and the current
fair value,
     less any impairment loss previously recognised in the Income Statement, is removed from
equity and
     recognised in the Income Statement.

     Forward foreign currency contracts
     The Company uses forward foreign currency contracts to hedge it's exposure to foreign
exchange risk
     arising from investing in assets held in foreign countries.  Forward currency contracts
are recorded as
     an asset and liability at the forward contract rate.  The liability is subsequently
remeasured to  fair
     value with the resulting gain / loss being recognised in the Income Statement.  Forward
foreign
     currency contracts are derecognised on contract maturity, with any subsequent gains or
losses being
     recognised in the Income Statement.


     Cash and cash equivalents
     Cash and cash equivalents comprise cash balances held with banks and brokers.  Bank
overdrafts
     that are repayable on demand are included as a component of cash and cash equivalents for
the
     purposes of the Cash Flow Statement.

     Income and expenses
     All income and expenses are accounted for on an accruals basis.

     Government grants
     Government grants are recognised on receipt of funds or earlier if there is reasonable
     assurance that the conditions of the grant will be met.  They are accounted for in the
Income
     Statement to the extent that they compensate the Group for expenses incurred and
recognised in
     the Income Statement.

     Establishment expenses
     Establishment expenses incurred on the launch of the Company have been accounted for in
the
     Income Statement as incurred.  As the Company was established as a Jersey nil par value
company
     it does not have a share premium account against which establishment expenses can be
debited.

     Investments in special purpose
     entities
     The Company has established a number of special purpose entities for investment
purposes.
     Investments in special purpose entities are measured in the financial statements at
cost.
     Annual impairment reviews are carried out with any subsequent write down in value of the
     investment being recognised in the Income Statement.


     Consolidation
     The consolidated financial statements incorporate the financial statements of the Company
and
     its subsidiaries (including special purpose entities which meet the requirements of
SIC-12 to
     be treated as subsidiaries).

     All intra-group balances are eliminated on
     consolidation.

3 Segmental information
                                              GB             AUS            US           
Total
                                              £               £              £             
£

     Total assets                          104,868,356       6,785,425  16,241,620      
127,895,401

     Segment revenue                            -               65,734     256,485          
322,219
                                                       
     Segment gross profit                       -               13,848      25,293           
39,141


     The Group operates in two distinctly separate geographical locations, with timberlands
located
     in New South Wales, Australia, Texas and Hawaii (US).

     The Group owns approx 21,163 acres of land known as Tarrangower in Ashford, Sydney,
Australia.
     This land was previously being used for cattle grazing and is now being planted with
high
     value commercial and non-commercial species with a view to longer term revenue from
plantations
     and short term revenue from carbon credits.  In addition to this, the Group has managed
to
     secure a grant from the local Catchment Management Authority for biodiversity
conservation and
     salinity control services provided by Tarrangower as a timber and carbon estate.

     In Texas, the Group owns approximately 21,853 acres of land known as Corrigan of which
the
     majority is established plantation with a balanced age distribution suitable for long and
short
     term sustainable yield.

     The Hawaiian plantation consists of a leasehold interest in 3,700 acres of mature
eucalyptus
     trees known as the Pahala plantation. The plantation was acquired to provide for the
needs of a
     veneer mill which is coming in to operation.  This will generate higher value products
such as
     veneer logs as opposed to commodity wood chips.


   4 Investments in special purpose
     entities
                                                                                       Total
cost
     Entity                             Jurisdiction      Activity        % held           
£

     Cambium Jersey Trust              Jersey          Disc. Trust            -
                                                                                       
58,024
     Cambium Corrigan LP               Texas           Plantations          100    
13,816,625
     Cambium Hungary Holdings          Hungary         Holding co           100
                                                                                       
12,506
     Corrigan Hungary Holdings         Hungary         Holding co           100
                                                                                       
12,506
     Cambium Pahala Inc                Delaware        Plantations          100     
2,792,498
     Cambium Pahala Hungary Holdings   Hungary         Holding co           100
                                                                                        
4,766
                                                                                   
16,696,925

     Cambium Jersey Trust is a Jersey discretionary trust of which the Company is sole
beneficiary.
     The Trust is sole investor in Cambium Australia Trust, a Unit Trust established in
Australia,
     which owns the Tarrangower property.

   5 Plantations                                                                        Land
and
                                                                                         
trees
                                                                                           
£
     Group

     Land and standing timber acquired in the period                                     
19,274,668
     Reforestation costs
                                                                                             
84,222
     Fair value movement                                                                  
2,719,236
     Carrying value as at 31 October                                                     
22,078,126
     2007

     The land and plantations are carried at their fair value as at 31 October 2007, as
measured by
     external independent valuers URS Australia Pty Ltd and Day Forest Management and
Appraisal Inc.
       The valuations have been prepared using techniques approved under International
Financial
     Reporting Standards.


   6 Property, plant and equipment                                          Motor
                                           Buildings     Improvements     Vehicles        
Total
                                               £               £              £            
 £
     Group

     Cost
     Assets acquired in period                585,450      62,211          12,091        
659,751
                                                        
     Balance as at 31 October 2007            585,450      62,211          12,091        
659,751
                                                        

     Depreciation and fair value
     movements
     Depreciation for the period                 -            -             (141)          
(141)
                                                           
     Fair value movement                      (255,731)    (1,333)            -        
(257,064)
                                              (255,731)    (1,333)         (141)       
(257,205)

     Carrying value
     As at 31 October 2007                    329,719      60,878          11,950       
402,546
                                                        

     The assets are carried at their fair value as at 31 October 2007, as measured by
external
     independent valuers URS Australia Pty Ltd and Day Forest Management and Appraisal Inc
(in
     conjunction with the external valuation of plantations).  The valuations have been
prepared
     using techniques approved under International Financial Reporting Standards.


   7 Intangible assets
                                                                                       Water
license
                                                                                            
£
     Group
     At initial cost                                                                         
44,437          
     Fair value movement                                                                     
71,098
     Carrying value as at 31 October                                                        
115,535
     2007

     The Tarrangower property has approximately 4km of frontage to the Severn River and has
attached
     to it a water license administered by the Department of Natural Resources in Australia
(DNR).
     The 105 megalitre surface irrigation license (Number 90SL100620) has rights attached to
it
     allowing an annual allocation of 48 Megalitres A class and 57 Megalitres B class from
Pindari
     Dam which is located 11km further up stream.  The license is renewable on a 5 yearly
basis and
     at no further cost to the Group.

     The license is measured at it's fair value as at 31 October 2007, as measured by
external
     independent valuers URS Australia Pty Ltd.


   8 Trade and other receivables                                                            
£

     Company

     Accrued interest on bonds                                                         
257,430
     Bank interest receivable                                                          
157,159
     Prepaid expenses
                                                                                        
30,388
     Other receivables
                                                                                        
22,865
                                                                                       
467,842

     Group

     Accrued interest on bonds                                                         
257,430
     Bank interest receivable                                                          
157,159
     Trade receivables
                                                                                        
24,831
     Prepaid expenses
                                                                                        
38,209
                                                                                       
477,629


   9 Inter-company advances                                                  AU$            
£

     Company

     Cambium Australia Trust                                                8,978,387   
3,989,685
     Cambium Jersey Trust                                                   1,030,000     
457,696
     Cambium Jersey Trust                                                     130,000      
57,768
                                                                                        
4,505,149


     The loan with Cambium Australia Trust is unsecured, bears interest which is compounded at
2%
     over the Australian Bank Base Rate calculated on the basis of 1 month interest periods
and is
     repayable on demand.

     The loans with Cambium Jersey Trust are unsecured, interest free and repayable on
demand.

  10 Available for sale investments                                                         
£

     Company and Group

     UK Treasury stock 7.25% 07.12.2007                                                   
8,908,900

     The UK Treasury stock is held as a margin account for the forward foreign currency
contracts
     (see note 11).  As the forward contracts have a strike date of 30 April 2008, it is the
     intention of the Company to purchase more gilts once the Treasury stock has matured.



  11 Forward foreign currency contracts                                                    
£

     Company and Group

     Forward foreign currency        At forward rate                                    
22,563,863
     contracts:

                                     At market rate                                     
21,519,144

     As at 31 October 2007 there were 3 forward foreign currency contracts in place.  They are
used
     to hedge against foreign exchange exposure arising from investing in assets held in
foreign
     jurisdictions and foreign currencies.

     All of the contracts have a strike date of 30th
     April 2008.

  12 Cash and cash equivalents                                                             
£

     Company

     Cash held at bank                                                                   
72,831,333
     Cash held at broker                                                                    
119,283
                                                                                         
72,950,616
     Group

     Cash held at bank                                                                   
73,229,520
     Cash held at broker                                                                    
119,282
                                                                                         
73,348,802

  13 Trade and other payables                                                              
£

     Company

     Accrued liabilities
                                                                                        
88,211
     Group

     Accrued liabilities                                                               
146,620
     Taxes payable
                                                                                        
29,107
     Trade creditors
                                                                                        
48,769
     Advances held                                                                     
133,255

                                                                                       
357,751


  14 Stated Capital Account                                                                 
£

     Net proceeds from issue of shares                                                 
104,350,000
     Less: reduction in share                                                          
(102,350,000)
     capital

                                                                                          
2,000,000

     The total authorised share capital of the Company is 250 million ordinary shares of no
par value
     with 104,350,000 shares issued at 100p each on initial placement.  Ordinary shares carry
no
     automatic rights to fixed income but the Company may declare dividends from time to time
to
     which ordinary shareholders are entitled.  Each share is entitled to one vote at meetings
of the
     Company.

     On 22 February 2007 a special resolution was passed by the Company to reduce the stated
capital
     account from £104,350,000 to £2,000,000.  Approval was sought from the Royal Court of
Jersey and
     permission was granted on 29th June 2007.  The balance of £102,350,000 was transferred
to a
     distributable reserve on that date.

  15 Revenue                                                                              £

     Group

     Sales - Timber                                                                    
132,240
     Lease income - Right of way                                                       
105,823
     Lease income                                                                       
23,334
     Grant income                                                                       
60,822
                                                                                       
322,219

     The grant income was received from Border Rivers-Gwydir Catchment Management Authority
(an
     Australian Government Authority) on signature of a Property Vegetation Plan ('PVP') in
     connection with the Tarrangower property.  The PVP covers conservation management,
regeneration
     of the area, natural revegetation and plantation and allows for income receipts of up to
a total
     of AU$960,000 on certification of certain milestones having been achieved by the
landholder .
     The PVP is for a term of 15 years and is governed by the laws of New South Wales.


  16 Risk Management Policies
     The Board of Directors and Investment Manager are responsible for overseeing the
measurement and
     control of all aspects of risk management and hold regular meetings in order to do so.

     Various risk management models are in place which help to identify and monitor key risks
both at
     individual investment level and at a group level.


     Credit risk
     Credit risk is the risk that the counterparty to a financial instrument will fail to meet
it's
     obligations, causing a loss to the Company.

     Cash and cash equivalents represent the majority of the Company's financial assets.  The
credit
     risk associated with the holding of cash and cash equivalents is managed under the
Company's
     Cash Management Policy.  The Cash Management Policy states that the Company must have a
minimum
     of 5 bankers with each banker permitted to hold a maximum of £20,000,000 so as to spread
the
     risk of default.  The Cash Management Policy will be reviewed on an annual basis by The
Board
     of Directors and the Investment Manager.

     Liquidity risk
     Liquidity risk is the risk that the Company will not be able to meet it's financial
liability
     obligations as they fall due.  The Company's liquidity risk is managed by the Investment
     Manager in accordance with policies and procedures established by the Board.

     The forward foreign currency contracts have been put in place so as to manage the
potential
     foreign exchange exposure arising from investing in assets in foreign jurisdictions.
     Hedging will only be employed once timber assets are acquired.  Therefore all hedging
     liabilities are matched with an associated asset so as to keep risk to a minimum.  The
hedging
     policy is reviewed quarterly by the Board.

                                                                                        3
months
     Contract maturities of financial                     < 1 month    1 - 3 months      - 1
year
     liabilities:
                                                              £              £             
£

     Forward foreign currency                                 -             -         
21,519,144
     contracts
     Trade and other payables                               357,751         -               -
     Bank overdrafts                                            120         -               -
                                                            357,871         -         
21,519,144
                                                       

     The forward foreign currency contracts have a strike date of 30
     April 2008.

     Market risk
     Interest rate risk
     The majority of the Company's financial assets are interest bearing in the form of cash.
     Interest rate risk arises in the Company predominantly from the holding of cash and cash
     equivalents.  The Board have established a Cash Management Policy to ensure the best
return
     from the Company's bankers and to mitigate interest rate risk arising from the holding of
cash.
     Cash is predominantly held on short term deposit and the Board review interest rates on
a
     quarterly basis.

     Currency risk
     The Company is exposed to currency risk through investing in assets held in currencies
other
     than it's functional currency.  As a result, the Company is exposed to the risk that the
     exchange rate of its currency relative to other foreign currencies may fluctuate and have
an
     adverse affect on the Company performance  The Company manages the risk of loss due to
     fluctuations in exchange rates through the use of forward foreign currency contracts. 
The
     forward foreign currency contracts are established and monitored in accordance with the
     Company's Hedging Policy.


  17 Events after the Balance Sheet
     date
     There have been no significant events after the balance sheet
     date.


  18 Related party transactions

     Colin McGrady is a director of CP Cogent Asset Management LP who act as Investment
Manager.  He
     is also a director of the Company and has waived his director's fees for the period.

     During the period £669,073 was paid to CP Cogent Asset Management LP in respect of
Management
     fees.

  19 Net Asset Value                                                                       
£

     Total assets                                                                     
127,895,401
     Total liabilities                                                                 
(21,877,015)
     Net Asset Value                                                                  
106,018,386

     Number of shares in issue as at 31 October 2007                                  
104,350,000

     Net Asset value per share at 31
     October 2007                                                                          
1.0160

     Net Asset value per share at 31                                                       
0.9815
     July 2007

Key Parties


Directors                                            Registered Office of the Company
Donald Adamson                                       5 Castle Street
Richard Rickman                                      St Helier
William Spitz                                        Jersey
Martin Richardson                                    JE2 3RT
Colin McGrady                                        Telephone +44 (0)1534 512512


Registrar, Paying Agent and Transfer Agent           Auditors
Capita Registrars (Jersey) Limited                   KPMG Channel Islands Limited
PO Box 378                                           PO Box 453
Jersey                                               5 St Andrews Place
JE4 0FF                                              Charing Cross
                                                     St Helier
                                                     Jersey
                                                     JE4 8WQ


Nominated Adviser for AIM                            Sponsor to CISX Listing
Landsbanki Securities (UK) Ltd                       Carey Olsen Corporate Finance Limited
Beaufort House                                       44 Esplanade
15 St Botolph Street                                 St Helier
London                                               Jersey
EC3A 7QR                                             JE1 0BD



Investment Manager                                   Administrator and Company Secretary
CP Cogent Asset Management, LP                       Investec Trust (Jersey) Limited
100 Crescent Court                                   5 Castle Street
Suite 500                                            St Helier
Dallas                                               Jersey
TX 75201                                             JE2 3RT



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United States

URS Australia Pty Ltd
Level 6, 1 Southbank Boulevard
Southbank
Victoria 3006
Australia




                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

IR QVLFFVFBZBBB
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