Forestry

The Group continues to expand its activities through a strong pipeline of future acquisition opportunities, with each potential site typically comprising a minimum of approximately 100 hectares.

Long-term global trends, including population growth, increasing demand for sustainable construction materials and the transition towards a lower-carbon economy, are expected to support sustained demand for timber and wood products¹. At the same time, the supply of commercially productive timber remains constrained by the limited availability of mature woodland, regulatory controls on harvesting and the natural biological cycle of tree growth.

Forestry benefits from long-term biological growth characteristics that provide operational flexibility. Harvesting programmes can be aligned with market conditions and woodland management objectives, enabling the Group to optimise long-term value while maintaining sustainable forestry practices.

In addition to timber production, the Group continues to explore complementary opportunities to enhance the long-term value of its forestry business, including environmental initiatives, biodiversity enhancement, recreational use and, where appropriate, carbon market opportunities.

¹ FAO, 2022

Fordie Estate is a 2,150-hectare mixed forestry and afforestation estate located near Crieff in Perthshire, Scotland. The Averon Group acquired Fordie Estate in August 2021, establishing it as a cornerstone of the Group's natural capital and sustainable forestry business.

Since acquisition, the Group has continued to develop and expand the estate through the acquisition of adjoining land, including Balmuick (41 hectares) in November 2023 and Wester Knockbae (129 hectares) in May 2025, creating a larger and more integrated landholding.

The estate comprises a diverse range of habitats, including commercial forestry, amenity woodland, peatland, wetlands, upland grazing and river systems. These are managed as an integrated landscape to enhance biodiversity, strengthen ecosystem resilience and promote sustainable land stewardship.

Fordie supports a diverse range of commercial and environmental activities, including afforestation, forestry and timber harvesting, livestock farming, fishing, renewable energy generation, holiday accommodation, long-term residential lettings and community engagement initiatives.

Fordie demonstrates the Group's long-term approach to natural capital management, combining sustainable commercial forestry with environmental enhancement and responsible stewardship of the estate. Since its acquisition, almost one million trees have been planted, reflecting the Group's continuing commitment to the long-term development of the estate and the creation of enduring environmental and commercial value.