The lumber producer’s share price rose 4% to R2.65 on Monday morning as
the market reacted to its interim results, released late on Friday.

York reported interim revenue declined 3% to R922m for the six months to
end-December, but after-tax profit nearly trebled, to R87m from R32m.

The results statement repeated past gripes that state-owned South
African Forestry Company Limited (Safcol) was price gouging.

York said it had reduced the number of logs it bought from external
suppliers by 48% while “utilising more of its own plantations on a
sustainable basis”.

“There was a weakening in industry lumber sales over the period,
consistent with the slow local economic growth rate. The reduced demand
impacted production of lumber, which decreased by 8% for the reporting
period,” the results statement said.

“Internationally the group has seen an increase in the demand for
plywood and products with a high standard of specifications resulting in export
volumes steadily increasing.”

Source: Business Day