8 February 2024
Woodbois
Limited
("Woodbois", the "Group" or the "Company")
$5m Trade Finance Term Sheet
Signed
Gabon Operational
Progress
2023 Reporting &
2024 Outlook
Woodbois Limited (AIM: WBI), a
leading company in the international timber industry, is pleased to
announce the following strategic advances
since the end of 2023.
The entire executive team is
currently in Gabon implementing the Group's 2024 strategic
initiatives following the previously announced changes in senior
management. This, together with the work on the Trade Finance
facility has led to a short delay from the anticipated timing of
this announcement, for which the Company
apologises.
Additional $5m Trade Finance Term Sheet
Signed
Further to the announcement of
29th December 2023, where the Company disclosed it was
looking to finalise a trade finance facility of $3.5m, the Company
is pleased to update that it has today entered into a term sheet
for a $5m facility, (the "Trade
Facility"). This will allow Woodbois to rapidly expand its
third-party and own production trading, which is expected to
significantly contribute to the Company's profitability this year.
A further announcement will be made in due course when the Company
executes the Trade Facility.
Gabon Operational Progress
The funds flowing from the new Trade
Facility and other initiatives to enhance financial flexibility
will enable the Group to achieve much greater activity and revenues
in Gabon, as well as its strict focus on its drive to
profitability, including:
·
the commencement of a second shift in the Mouila
sawmill;
·
Increasing veneer production;
·
production optimisation through improved line
configuration and machinery maintenance, increasing yields and
easing of bottlenecks such as kiln drying;
·
cost savings through simpler, more direct
management structures and other efficiencies;
·
improvements in export processes; and
·
worker and community welfare
improvements.
2023 Reporting & 2024 Outlook
Prior Company updates, including
that of 28th December 2023, noted that the year was
characterised by various challenges resulting in the much lower
production output, trading, turnover and overall activity than in
prior years.
Unaudited net working capital at the
31 December 2023 was estimated at $4.7m including cash of $0.5m and
excluding borrowings of $2.7m, the latter of which was reduced from
$14.3m at the end of 2022. The working capital position has not
changed significantly by the end of January 2024. The Company
expects to issue its audited 2023 results in May 2024.
The Board is
confident that 2024 will mark a positive and decisive turning point
for Woodbois, turning the Company into a reliable, cash generative
and profitable business with a high-quality investor
base.
The Company also hopes to announce a
strengthening of the Board with the appointment of a new
Non-Executive Director in the coming weeks.
Guido Theuns, Executive Chair & CEO, said:
"The new $5m
Trade Facility demonstrates great belief in the future-prospects of
the Company, whilst initiatives are ongoing to further enhance our
operational and financial flexibility. The Board is focused to
achieve profitability in 2024, through enhancing production volumes
and quality, expanding third party trading, whilst also further
streamlining costs and progressing the carbon credit business
plan.
In
my first two months as Executive Chair and CEO, I have seen the
great potential in the Company and the spirit of the team. I am
sure Woodbois's inherent value will become increasingly
realised.
The overarching goal is to reach profitability and become cash
flow positive as swiftly as possible, thereby laying the platform
for material growth, including via M&A, and ensuring that
Woodbois is attractive as an investment. I am highly confident we
will deliver for the benefit of all
stakeholders."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014 which forms part of UK
law by virtue of the European Union (Withdrawal) Act 2018
("MAR").
Enquiries:
Woodbois Limited
Guido Theuns, Executive Chair &
CEO
Carnel Geddes, CFO
|
+ 44 (0)20 7099 1940
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Canaccord Genuity (Nominated Advisor and
Broker)
Henry Fitzgerald-O'Connor
Harry Pardoe
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+ 44 (0)20 7523 8000
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Novum Securities (Joint Broker)
Colin Rowbury, Jon Bellis
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+44 (0) 20 7399 9427
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Axis Capital Markets Limited (Joint Broker)
Ben Tadd, Lewis Jones
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+44 (0) 203 026 0449
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About Woodbois:
Woodbois is a Guernsey-based
company at the forefront of the timber industry, committed to
delivering quality products and sustainable solutions. With a
legacy of innovation and a vision for the future, it strives to set
industry standards and exceed expectations. Please
follow the Company on X: @WoodboisLtd