Cambium Global Timberland : January 27 2022Interim Results

27 January 2022

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 2021 is 9.1p.

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 2021 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 Sanne 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 2021

Chairman's statement

Assets and values

The Company's Net Asset Value per share ("NAVPS") as of 31 October 2021 is 9.1p, compared with 9.9p as at 30 April 2021, a decrease of 8.6% in the period.

The change in NAVPS comprised currency movements -4.8% and net expenditure on costs -3.8%.

As announced on 20 May 2021, the Company completed its exit from interests in property-related assets by selling its interest in the Lizarda property, leaving the Company with the receivables to become payable under the announced land sales contracts, wood sale receivables from the Forquilha wood sale contract previously announced, and its cash balances at bank. The Company retains legal title to the land assets until receipt in each case of final payments for the land sale. The Board continues to consider timing for the contemplated winding up of the Company and in the meantime, not having yet taken steps to instigate that winding up, presents these interim financial statements on a going concern basis. The Board will re-visit this judgment when it completes its review into the appropriate method, based on considerations including cost effectiveness and timing of proposals, to wind up. Winding up is of course the only remaining substantive step for the Company and will enable distribution of the final net cash balance to shareholders as a return of capital.

As at the period end the Company and its subsidiaries had cash reserves of £3.4 million.

Costs

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

Administrative expenses are down 4% on the corresponding prior period (note 4).

Forestry expenses (note 5) show the anticipated fall against the prior period as the result of the asset disposals, down 95%.

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 £0.35 million, as compared with £0.64 million for the same period last year.

Conclusions

I have been frustrated by the inability over the period to find means, via a reverse transaction, of extracting additional value for shareholders from the AIM listing and corporate structure. I attribute that inability to the counter-parties' perception of the "Brazil risk". Those endeavours have now concluded I now look forward to delivering to shareholders the conclusion to this journey.

Antony R Gardner-Hillman

Chairman

26 January 2022

Unaudited condensed consolidated interim statement of comprehensive income

For the six months ended 31 October 2021

		For the six	For the six
		months ended	months ended
		31 October	31 October
		2021	2020
		Unaudited	Unaudited
Continuing operations	Notes	£	£
Finance costs		(1,258)	(58,610)
Net foreign exchange loss		-	(278)
Net finance costs		(1,258)	(58,888)
Administrative expenses	4	(197,651)	(239,703)
Loss for the period from continuing operations		(198,909)	(298,591)
Discontinued operations
Revaluation of receivables from disposals of assets held for sale	10	79,521	-
Costs arising on settlement of sales receivables	10	(78,477)	-
		1,044	-
Administrative expenses	4	(134,283)	(105,411)
Forestry management expenses		-	(1,068)
Forestry operating expenses	5	(11,880)	(225,990)
		(146,163)	(332,469)
Operating loss from discontinued operations		(145,119)	(332,469)
Finance costs		(8,951)	(6,844)
Net foreign exchange gain/(loss)		2,950	(63,567)
Net finance costs		(6,001)	(70,411)
Loss before taxation from discontinued operations		(151,120)	(402,880)
Taxation charge	6	-	-
Loss for the period from discontinued operations		(151,120)	(402,880)
Loss for the period		(350,029)	(701,471)
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	12	(281,352)	(505,712)
Other comprehensive loss for the period		(281,352)	(505,712)
Total comprehensive loss for the period		(631,381)	(1,207,183)
Basic and diluted loss per share	7	(0.47) pence	(0.95) pence
Basic and diluted loss per share from continuing operations	7	(0.27) pence	(0.40) pence
Basic and diluted loss per share from discontinued operations	7	(0.20) pence	(0.55) pence

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

The notes below form an integral part of these unaudited condensed consolidated interim financial statements.

Unaudited condensed consolidated interim statement of financial position

At 31 October 2021

	31 October	30 April
	2021	2021
	Unaudited	Audited
Notes	£	£

Non-current assets
Trade and other receivables	11	771,768	942,487
Current assets
Assets held for sale	10	822,028	980,744
Trade and other receivables	11	1,795,805	2,879,821
Cash and cash equivalents		3,413,474	2,721,997
Total current assets		6,031,307	6,582,562
Total assets		6,803,075	7,525,049
Current liabilities
Liabilities held for sale	10	62,585	160,443
Trade and other payables		46,101	38,836
Total liabilities		108,686	199,279
Net assets		6,694,389	7,325,770
Equity
Stated capital	13	2,000,000	2,000,000
Distributable reserve	14	82,603,312	82,603,312
Translation reserve	12,14	(1,781,601)	(1,500,249)
Retained loss		(76,127,322)	(75,777,293)
Total equity		6,694,389	7,325,770
Net asset value per share	8	9.1 pence	9.9 pence

These unaudited condensed consolidated interim financial statements were approved and authorised for issue on 26 January 2022 by the Board of Directors.

Antony R Gardner-Hillman	Mark Rawlins
Chairman	Director

The notes below form an integral part of these unaudited condensed consolidated interim financial statements.

Unaudited condensed consolidated interim statement of changes in equity

For the six months ended 31 October 2021

	Share	Distributable	Translation	Retained
Unaudited	Capital	reserve	reserve	loss	Total
	£	£	£	£	£
For the six months ended
31 October 2021
At 30 April 2021	2,000,000	82,603,312	(1,500,249)	(75,777,293)	7,325,770
Total comprehensive loss for the period
Loss for the period	-	-	-	(350,029)	(350,029)

Other comprehensive loss
Foreign exchange loss on translation of	-	-	(281,352)	-	(281,352)
discontinued foreign operations (note 12)
Total comprehensive loss	-	-	(281,352)	(350,029)	(631,381)
At 31 October 2021	2,000,000	82,603,312	(1,781,601)	(76,127,322)	6,694,389
	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	-	-	(505,712)	-	(505,712)
discontinued foreign operations (note 12)
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

The notes below form an integral part of these unaudited condensed consolidated interim financial statements.

Unaudited condensed consolidated interim statement of cash flows

For the six months ended 31 October 2021

		For the six	For the six
		months ended	months ended
		31 October 2021	31 October 2020
		Unaudited	Unaudited
	Note	£	£
Cash flows from operating activities
Loss for the period		(350,029)	(701,471)
Adjustments for:
Revaluation of receivables from disposals of assets held for sale	10	(79,521)	-
Costs arising on settlement of sales receivables	10	78,477	-
Net finance costs, excluding foreign exchange movements -
continuing operations		1,258	58,610
Net finance costs, excluding foreign exchange movements -
discontinued operations		8,951	6,844
(Increase)/decrease in trade and other receivables (excluding
receivables reclassified from assets held for sale)		(18,491)	14,085
Decrease in trade and other payables		(90,593)	(11,178)
		(499,948)	(633,110)
Tax paid		-	-
Net cash used in operating activities		(499,948)	(633,110)
Cash flows from investing activities - discontinued operations
Net proceeds from sale of assets held for sale	10	128,816	1,106,244
Net proceeds from deferred settlement of sales debtors		982,399	-
Net cash from investing activities	10	1,111,215	1,106,244
Cash flows from financing activities
Net finance costs, excluding foreign exchange movements		(10,209)	(8,434)
Net cash used in financing activities		(10,209)	(8,434)
Net increase in cash and cash equivalents		651,058	464,700
Foreign exchange movements		40,419	(77,036)

Balance at the beginning of the period	2,721,997	625,612
Balance at the end of the period	3,413,474	1,013,276

The notes below form an integral part of these unaudited condensed consolidated interim financial statements.

Notes to the unaudited condensed consolidated interim financial statements

For the six months ended 31 October 2021

1. General information

The Company and its subsidiaries (together the "Group"), are nearing the end of a process of realising a portfolio of forestry based properties managed on an environmentally and socially sustainable basis. The Group has disposed of its forestry assets and as at the period end date the Group's remaining forestry-related assets, comprising plantations awaiting harvesting and receivables related to such sales, are all located in Brazil.

The Company is a closed-ended company with limited liability, incorporated in Jersey, Channel Islands on 19 January 2007. The address of its registered office is Charter Place, 23-27 Seaton Place, St Helier, Jersey JE1 1JY.

These unaudited condensed consolidated interim financial statements (the "interim financial statements") were approved and authorised for issue on 26 January 2022 and signed by Antony Gardner-Hillman and Mark Rawlins on behalf of the Board.

The Company is listed on AIM, a market of the London Stock Exchange.

2. Basis of preparation

The interim financial statements for the six months ended 31 October 2021 have been prepared in accordance with International Accounting Standard ("IAS") 34 "Interim Financial Reporting" and with applicable legal and regulatory requirements of the Companies (Jersey) Law 1991. They do not include all of the information required for full annual financial statements. The interim financial statements should be read in conjunction with the Group's annual report and financial statements for the year ended 30 April 2021, which were prepared in accordance with International Financial Reporting Standards ("IFRS") issued and adopted by the International Accounting Standards Board ("IASB"). The comparative numbers used for the unaudited condensed consolidated interim statement of comprehensive income, unaudited condensed consolidated interim statement of changes in equity and unaudited condensed consolidated interim statement of cash flows are those of the six month period ended 31 October 2020, in accordance with IAS 34. The comparatives used in the unaudited condensed consolidated statement of financial position are those of the previous financial year to 30 April 2021.

The accounting policies applied by the Group in these interim financial statements are the same as those applied by the Group in its financial statements for the year ended 30 April 2021.

The interim financial statements have been presented in Sterling, which is also the functional currency of the Company, and under the historical cost convention, except for plantations, assets and liabilities held for sale and certain financial instruments, which are carried at fair value less cost to sell.

The preparation of financial statements in accordance with IFRS requires Directors to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the date of the financial statements. It also requires management to exercise its judgement in the process of applying accounting policies. The main area of the financial statements where significant estimates are made by the Directors is in determining the valuation and fair value of the assets held for sale and contractual receivables for the sale of land and plantations.

In preparing the interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty are the same as those that applied to the financial statements for the year ended 30 April 2021.

Going concern and assets and liabilities held for sale

On 30 November 2012, the Directors announced the outcome of the strategic review initiated in June 2012. The Directors proposed and recommended a change of investment policy with a view to implementing an orderly realisation of the Group's investments in a manner which maximises value for shareholders, and to returning surplus cash to shareholders over time through ad hoc returns of capital. This proposal was approved by shareholders at an Extraordinary General Meeting ("EGM") on 22 February 2013.

Since the EGM, the portfolio has been reviewed by the Directors with a view to an orderly sale of the assets in such a manner as to enable their inherent value to be realised. During the prior year, the Directors have completed sale transactions for the Group's remaining forestry assets. As a result, at 31 October 2021, the portfolio of assets is classified as held for sale (and its transactions for the period as discontinued operations) under IFRS 5 'Non-currentAssets Held for Sale and Discontinued Operations', as disclosed in note 10.

As at the date of approval of these financial statements, the Directors have not yet taken steps to instigate a winding-up of the Company, a course of action that would require the approval of shareholders. As a result, as at 31 October 2021, the assets and liabilities of the Company pertaining to the Jersey operations have not been classified as held for sale and its Jersey operations continue to be treated as continuing.

The COVID-19 pandemic has resulted in adverse impact to businesses globally and has contributed to the volatility of many businesses and communities throughout the world. The impact of the global spread of COVID-19 continues to evolve and will require continued assessment as the pandemic follows its course. The extent of the impact on the Group's investments and ultimately to the Group will depend on future developments, including the duration of the outbreak and the extent of the impact of the pandemic on the Brazilian economy, in particular on the counterparties to the Group's agreements for the sale of the Agua Santa, Ribeirao do Gado and Forquilha properties. The virus is widespread in Brazil, and is likely to continue to be so for some time, however there is evidence that Brazilian rural activities continue largely unaffected. These agreements are underpinned by the competitive Brazilian exchange rate and continued demand for wood, paper and agricultural products on a worldwide basis. The Group continues to monitor the ability of service providers to continue to function with employees working from home. In the opinion of the Board, there