11 INTEGRATED ANNUAL REPORT 2025 to complete the rebuild as efficiently as possible. Most of the insurance monies were only realised in the 2025 financial year, which is reflective in the profits for the Group of R133 million. The combined insurance payouts of around R400 million, together with a R 100 million loan from our financiers FNB, were used to fund the rebuild activities and targeted improvements, with our cash reserves used to serve the operational requirements of our business. The resultant effect though, is that with the reduced throughput of timber, our turnover for the year has decreased to R1 866 billion, down from R2.9 billion, and it is a key NCT objective to boost throughput to above the two million tonnes in the next year. We understand that our members have been facing challenging financial times as the delayed access for Acacia growers and lack of access to markets for our Eucalyptus growers, accompanied by reducing margins, have added considerable financial pressure on our members. The reduction in margins in our industry is evident from the downward plantation revaluation of our own tree farms, which are not only a result of the decreased MDPs but also of the increasing cost pressures faced by our industry. We however continuously look at ways in which we can optimise our production to minimise the costs of operations. Being a global player in the woodchip industry we are at the mercy of the markets, and this is where our approach to create and sustain strategic customer relationships continues to bear fruit. We continue to strive to be reliable and stable business partners to all our customers and to ensure that as preferred suppliers, we get the best possible prices whilst not compromising our volumes in our markets. Although it hasn’t been easy, we believe that we have come through this challenging year in a relatively strong position, again emphasising the necessity of having strong cash reserves in the background to assist in such challenging times. It has become evident from our interactions with our customers that FSC certification is becoming more important in the global space. It is for this reason that we have focussed a good amount of energy in driving this forward and increasing the proportion of our certified timber. When having faced a disaster such as the fire of 2023, one tends to look for positives in the whole event, and it is certain that, once completed within the current period, NCT will have two brand-new chipping facilities in Richards Bay, which will undoubtedly stand us in good stead as we continue to add value to our members’ operations for many years to come. Within all these challenges we were not allowed to lose sight of our other strategic objectives and had to remain focussed to manage our business operations in an environmentally friendly manner to ensure the longterm sustainability of our industry. The management and staff of NCT have stood up to the challenges in these adverse times, and led by our General Manager, Danny Knoesen, each new obstacle has been faced with great tenacity and ingenuity in solving the complex problems that have been faced. The Board has also seen some changes during the year, with Juanita Mason stepping down and Ben Seele taking up the reins as a Board Member. Philip Day and Ant Gibbs will reach their retirement age by the next AGM and as such will have to pass on the baton.
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