NEWS UPDATE: Timbercorp to end retail product offers next year
Timbercorp Agribusiness Investment Managers will cease offering new agribusiness investment projects to the retail market in 2009, according to chief executive Sol Rabinowicz.
In a letter — in the possession of Money Management — sent today to stakeholders, he said Timbercorp “may offer MIS [managed investment scheme] products in the future and will reconsider our position next year”.
“We will also continue to manage growers’ investments across our extensive forestry and horticulture estate.”
Timbercorp will continue to “devote substantial resources to servicing our investor client base and financial advisers”, he added.
The decision to stop offering retail products was made as part of a broader strategic review of the company being undertaken by the board of directors.
It was also made in response to the “uncertain Australian regulatory framework for new non-forestry MISs, and general economic conditions”.
These conditions have resulted in Timbercorp significantly reducing its sales and marketing division and closing offices in Brisbane, Adelaide, Perth and Sydney.
The decision follows Timbercorp’s announcement of a lower net profit for the half-year ending March 31 despite a rise in total revenue for the same period.
Net profit was $3.5 million, down from $5.6 million at the same time last year, while total revenue increased by almost 18 per cent to $189.8 million from $161 million.
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