71 INTEGRATED ANNUAL REPORT 2026 The Group earned R35.7 million in interest during the year, another advantage of holding cash reserves. After finance costs of R9.3 million relating to long-term loans, the remaining R26.4 million was available to contribute to operating costs and support timber prices. As part of our continued efforts to streamline operations and generate profits within the Co-operative, ShinCel (Pty) Ltd was deregistered and the investment in Shield Overall Manufacturers (Pty) Ltd (Shield) was impaired to reflect this. The intention is to deregister Shield in the new year, which will further simplify the Group structure. The Board and management continue to review the optimal structure, management and costs of the various subsidiaries and farms, alongside Group risks and operational efficiencies. Deferred tax, which is a provision for future taxes, has reduced overall due to unfavourable plantation adjustments and tax losses. The only long-term liability remaining is the loan used to finance a portion of the rebuild at Richards Bay. The retirement benefit obligation increased significantly compared to the prior year due to actuarial losses resulting from lower discount rates, partially offset by lower expected increases in healthcare costs. Assets exceed liabilities by R2 billion, and the quick ratios of the Group and Co-operative are 1.9 and 1.4 respectively. Our Co-operative therefore remains in a strong position despite ending the year with slightly lower cash reserves. As we enter another year of uncertainty, we do so with the backing of a strong organisation whose directors, management and staff are competent and have the best interests of our members at heart.
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