(Alliance News) - Foresight Sustainable Forestry Co PLC on Tuesday reported double-digit profit growth ahead of its pending acquisition by Averon Park Ltd.

The London-based company offers direct investment into UK forestry and afforestation projects.

In the half-year that ended March 31, pretax profit grew 10% to GBP6.6 million from GBP6.0 million the previous year.

Net asset value fell 5.8% to 102.2 pence per share from 108.5p last year, with NAV falling to GBP175.8 million from GBP186.6 million.

NAV total return since IPO stood at 4.2%, lower than the 11% reported last year.

Chair Richard Davidson said: "The company has delivered on its objectives to increase domestic timber supply, sequester carbon dioxide from the atmosphere, enhance biodiversity and has created hundreds of jobs within rural communities where it operates."

Between March 31 and May 10 the company planted 650,000 trees and plans are in place to plant 9.4 million trees by spring 2025.

On May 29 the company said it agreed to a takeover by Averon Park, a firm seeking opportunities to commit capital to trading businesses.

Averon Park offered 97 pence per share to the forestry investment trust managed by Foresight Group LLP, a premium of 33% to Foresight's closing price of 73.0p each the previous day.

FSF shares were up 0.5% to 95.46 pence each in London on Tuesday afternoon.

The acquisition is due to close in the third quarter of 2024.

By Elijah Dale, Alliance News reporter

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