REG - Woodbois Limited - Market Update

WoodboisAnnouncement

09/12/2024 07:00

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RNS Number : 2635P  Woodbois Limited  09 December 2024

The information contained within this announcement was deemed by the Company
to constitute inside information as stipulated under the UK Market Abuse
Regulation.

9 December 2024

WOODBOIS LIMITED

("Woodbois" or the "Company")

Market Update

Woodbois Limited is pleased to provide an update on significant operational
and strategic developments as we continue to solidify our position in the
global timber market.

Order Book Update

Woodbois' key existing major international clients in Libya, Iraq, and South
Korea have, in aggregate, placed indicative purchase orders for over 9,000 m³
of sawn timber. This is valued at approximately USD 4.5 million and covers the
next 12 months with the bulk expected to be shipped in the first half of next
year. The volumes under these orders are dynamic, and the directors expect
further orders to be placed during the course of the year.

The Company currently has open contracts for veneer, whereby clients will
purchase Woodbois' entire expected production for the next six months of 6,600
m³ valued at approximately USD 4 million.

Shipping Update

17 containers of timber are currently at the port in Libreville and scheduled
for shipment in the coming days. A further 55 containers are being prepared
from stock at the warehouse in Moulia and it is anticipated that these will be
transported to the port and shipped in the first quarter of next year.

Improved Payment Terms

Significant progress has been made in transitioning client payment terms, with
more clients now adopting 'Cash for Documents' payment methods instead of
traditional letters of credit. This shift positively impacts Woodbois' cash
flow, ensuring more timely and efficient financial operations.

Maintaining Production During Rainy Season

During the rainy season, harvesting wood from our concessions is more
challenging due to heavy rain and poor road conditions in the forest. Woodbois
has initiated the purchase of 2,000 m³ high-quality logs per month from third
parties in Gabon who currently have stock available. This will ensure
uninterrupted production levels, and supply chain reliability.

Salary Cost Savings

The ongoing transformation of the Woodbois organisation has resulted in
substantial cost savings without compromising production levels:

·      In Gabon, salary costs have been reduced by 46% compared to 2023.

·      For the international organisation outside Gabon, salary costs
have been reduced by 45% compared to 2023.

These savings reflect our commitment to achieving operational efficiency while
maintaining production capacity.

CEO Statement

Guido Theuns, Executive Chair and CEO of Woodbois Ltd, commented:

"We are making progress in streamlining our operations and improving financial
performance. By securing orders from known and reliable clients, enhancing
payment terms, reducing costs, and taking proactive steps to maintain
production during challenging conditions, we are building a stronger
foundation for sustainable growth. I am proud of the team's efforts and remain
confident in our ability to deliver value for our shareholders and clients."

Enquiries:

 

 Woodbois Limited                             + 44 (0)20 7099 1940

 Guido Theuns, Executive Chair & CEO

 Johannes Bloemen, CFO

 Allenby Capital Limited (Nominated Adviser)  +44 (0)20 3328 5656 info@allenbycapital.com

 John Depasquale, Piers Shimwell

 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

 

 

 

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