TFS sales estimate upgrade

LISTED sandalwood supply company TFS Corporation has confirmed that it has more than doubled its 2004-05 financial year sales forecast set out in its December 2004 prospectus. TFS said it had received application for the sale of 223 hectares of sandalwood grown in the Ord River irrigation area, and is currently negotiating the further sale of 25 hectares of Indian sandalwood woodlots to meet buyer demand. The company’s forecast for this year was for base case sales of 100 hectares, with a high of 125ha and a low of 75ha. TFS listed on the Australian Stock Exchange in December last year and made an initial after-tax profit forecast of $4 million for the full 2004-05 financial year in its pre-listing prospectus. However, TFS said its first-half profit of $2.41 million and continued strong sales would ensure the original profit forecast was exceeded. The company also said it had been buoyed by the most recent auction price of sandalwood in India, which has increased the average price from $US45,000 to $US60,000 a tonne in a four-month period.