(MENAFN- ProactiveInvestors)Obtala Resources (LON:OBT) said its strategy for 2015 will revolve around spinning out the timber business from the farming and retail businesses in order to realise more value from it. The move was first revealed in an update earlier this month but the company put a little more meat on the bones as it issued its prelims. It said the divestment is likely to be completed via a dividend in specie which allows the return of assets rather than cash. An independent report assigned a net present value of £102mln to its timber acreage as it added a further 35000 hectares to its portfolio. 'The valuation of the timber assets not only underpins the potential of the business but also demonstrates a great opportunity to expand our revenue potential with increased sales expected in Mozambique' the company said. 'The strategy in 2015 is to reorganise and divest the forestry division to recognise its true value and to grow the business in Mozambique more expeditiously. 'This will benefit Obtala shareholders directly as we assess the viability of a stock allocation via a dividend in-Specie in part to existing Obtala shareholders. The figures for the year to December 31 revealed net assets total just over £99mln while it is sitting on cash of £3.27mln. Revenues advanced 271% in the period to £1.69mln though as is normal with a company at this formative stage of it development it was loss-making. The operating loss was just over £4mln (narrowed from £10.44mln a year earlier) while the net loss was £13.9mln which included a paper loss on its disposal of its holding Paragon Diamonds.
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