REG - Woodbois Limited - $5m Trade Finance, Gabon Progress & 2024 Outlook

WoodboisAnnouncement

08/02/2024 07:15

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RNS Number : 4086C  Woodbois Limited  08 February 2024

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 29(th) 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 28(th) 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                + 44 (0)20 7099 1940

 Carnel Geddes, CFO

 Canaccord Genuity (Nominated Advisor and Broker)   + 44 (0)20 7523 8000

 Henry Fitzgerald-O'Connor

 Harry Pardoe

 Novum Securities (Joint Broker)                    +44 (0) 20 7399 9427

 Colin Rowbury, Jon Bellis

 Axis Capital Markets Limited (Joint Broker)        +44 (0) 203 026 0449

 Ben Tadd, Lewis Jones

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

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