Half Year Results

Woodbois Limited

30 September 2024

 

Woodbois Limited

("Woodbois", the "Group" or the "Company")

Half-year results for the six months to 30 June 2024 (unaudited)

Outlook for second half of 2024

Woodbois the African focused sustainable forestry, reforestation, carbon Sequestration, and timber trading company, announces its unaudited results for the half year ended 30 June 2024 and H2 Update

Highlights Financial

H1 2024 EBITDAS^1,2  $ (0.6)m versus H1 2023 $ (2.8m)

H1 2024 Group Gross Profit $ 1.8m versus H1 2023 $ 0.5m

H1 2024 Revenue : $ 3.64m versus H1 2023 $ 4.8m

H1 2024 working capital^1,3 $ 2.5m versus H1 2023 $ 9.0m

H1 2024 Group borrowing $ 4.1m versus H1 2023 $ 5.6m

Cash balance $ 0.7m as at 30 June 2024

Highlights Operations

H1 2024 sawn timber production 5,040 m3 versus H1 2023 3,700 m3

H1 2024 veneer production 1,840 m3 versus H1 2023 2,000 m3

Our veneer production suffered operational setbacks at the start of the year which caused the lower veneer production however these are now resolved and we are operating at a consistent and higher rate having addressed all previous issues.

Comment from Group CFO, Johannes Bloemen

"The first half of 2024 has been a period of continued transformation and operational restructuring for Woodbois. Despite the challenges we've faced, our financial performance reflects the progress made in stabilizing our operations and laying the groundwork for future growth."

Comment from Guido Theuns, CEO and Executive Chair:

"We are pleased to see the positive results of our restructuring efforts and cost-saving measures reflected in the first half of 2024. The turnaround in our financial performance demonstrates that we have successfully managed to 'turn the ship' and are now heading in the right direction. With the Company back on a stable footing, we are confident in our path towards profitability as we continue to optimize operations and drive growth across all divisions."

Enquiries:

Woodbois Limited Guido Theuns, Executive Chair & CEO Johannes Bloemen, CFO	+ 44 (0)20 7099 1940
Canaccord Genuity (Nominated Advisor and Broker) Henry Fitzgerald-O'Connor Harry Pardoe	+ 44 (0)20 7523 8000
Novum Securities (Joint Broker) Colin Rowbury, Jon Bellis	[phone]
Axis Capital Markets Limited (Joint Broker) Ben Tadd, Lewis Jones	[phone]

Financial Review:

·      EBITDAS: Most notably, we achieved an improved EBITDAS of $(0.6)m, a significant turnaround from the $2.8m loss in H1 2023. This improvement reflects the success of our restructuring efforts and focus on enhancing margins, while also factoring in the proceeds from the sale of our Mozambique operations, as announced in our RNS of 13th March 2024 and 10th September 2024.

·      Gross Profit: Our gross profit improved to $1.8m from $0.5m in H1 2023, reflecting the effectiveness of our cost management and operational efficiency initiatives.

·      Revenue: Revenue for H1 2024 was $3.64m, compared to $4.8m in the same period last year We continue to restructure and optimize our operations. The improvements we have made so far are expected to drive better results in the second half of the year. Production levels and the corresponding revenue generation typically follow with a delay, as revenue is only recognized once the production is invoiced, which often occurs after the completion and delivery of the goods. Recognized revenue in H1 2024 includes $1.0m from the sale of Mozambique concessions.

·      Working Capital:  Working capital declined to $2.5m in H1 2024 from $9.0m in H1 2023, driven by our efforts to reduce inventory levels and improve collections on receivables, while carefully managing payables. It is important to note, however, that the comparison with H1 2023 provides an imperfect view, as the working capital at that time included new funds from a recent capital raise, and a large portion of bank debt was classified as non-current. We continue to commit to control  costs and streamline operations amid a lower revenue environment. We remain confident that these measures will contribute to long-term stability.

·      Borrowings: Our focus on reducing debt has paid off, with Group borrowings decreasing by 27% to $4.1m, down from $5.6m in H1 2023. This reduction is a testament to our commitment to deleveraging and building a stronger financial foundation for the future.

·      Cash Management: We maintained a cash balance of $0.7m at the end of H1 2024, demonstrating our disciplined approach to managing liquidity during this transitional period.

One of the biggest challenges during this transformation has been restructuring our finance organization, which was previously spread across four different countries, each operating with stand-alone systems and software packages. We believe we are now on the right path, as our financial systems are being implemented on a unified platform and fully integrated. This integration will ensure better transparency and financial control across the organization.

The board believe these results signal that Woodbois is on the right path. Our strategic emphasis on sustainability, operational efficiency, and financial discipline will continue to guide us as we move into the second half of the year, with stronger foundations for future growth and profitability.

Strategic Reorganization and Focus on Core Operations

2024 marked a decisive turning point for Woodbois as we executed a thorough reorganization of the Group. A key part of this has been the divestment of non-core assets, such as our Mozambique operations, which were sold in June. This sale enables us to concentrate on our core business in Gabon, where we continue to refine and optimize our production capabilities. By consolidating our administrative functions in Guernsey, Dubai, and Gabon, we have reduced overhead costs and positioned the Group for sustainable, long-term growth.

The restructuring of our Gabon operations has also been instrumental. We implemented a new management team and real-time controls, increasing operational efficiency and laying the groundwork for higher production outputs in the second half of 2024. We are pleased to report that despite these changes, we have maintained daily production levels comparable to the first half of 2023 and are on track to deliver significantly increased production outputs by year-end.

Financial Milestones and Trade Finance Facility

In June, we secured a $5 million trade finance facility from a family office in Dubai, which strengthens our trading capabilities and positions us to take advantage of new opportunities in the hardwood sector. This facility will allow us to expand trading volumes, enhance supply chain efficiencies, and commit to larger, more frequent transactions-key components in our strategy to drive profitability​. However, as set out in our update earlier in September, we are taking a cautious approach to third party trading, under stricter controls, therefore the finance facility remains in place but currently substantially undrawn at present.

We also raised £2 million through the exercise of warrants in February, a move that not only strengthened our cash position but also demonstrated shareholder's confidence in our future prospects. These funds have been fully received and directed toward scaling up production and further improving operational efficiencies.

Board and Leadership Changes

Our leadership team has seen significant changes during the first half of 2024.

We are pleased to announce the appointment of Mr. Adriaan Roecoert as Non-Executive Chair of the Company, effective immediately. Mr. Roecoert, who previously served as a Non-Executive Director (as announced on 27th June 2024), brings extensive expertise in international mergers and acquisitions. His experience is expected to significantly contribute to Woodbois' ongoing growth and strategic expansion.

During the Company's transition, the roles of CEO and Executive Chair were combined. However, as Woodbois moves into its next phase, focused on scaling up through organic growth while actively seeking merger and acquisition opportunities, separating these roles is seen as a strategic move to better serve the company's future objectives. Mr. Guido Theuns will continue in his role as CEO, focusing on operational leadership.

The complementary expertise of Mr. Roecoert and Mr. Theuns will empower Woodbois to accelerate its expansion plans and create value. Their combined leadership will provide the Company with sharper strategic focus and enhanced operational execution.

The Board believes that this development will strengthen governance and performance, further supporting Woodbois' growth ambitions.

We said farewell to Carnel Geddes (CFO) and Graeme Thomson (Independent Non-executive Director), who stepped down after years of dedicated service to Woodbois. Both have remained available for the handover as we bring in new talent to help drive our strategic objectives.

Johannes Bloemen was appointed CFO in August. He has been with the Group heading up and reorganising the Gabon finance function since early January 2024 and more recently has been assuming increasingly wider responsibility for the Group's finance function. Johannes has had a long career in senior financial positions in various complex municipalities, as well as providing accountancy and tax advice to other clients.

We are currently in the process of recruiting two additional Non-Executive Directors to complete and strengthen the Board, ensuring a balanced and diverse range of expertise to support the Company's strategic goals.

Operational Enhancements and Market Opportunities

Our focus on optimizing production and operational efficiency is already yielding results. In the first half of 2024, step by step we ramped up our production in Gabon, supported by investments in new machinery and an expanded workforce. With demand for our products remaining high, we have secured forward orders for timber and veneer, with key markets in the Middle East and Asia committed to purchasing all we can produce.

Additionally, we are doubling our drying capacity by installing new kilns and adding saw lines to boost output. These improvements, combined with renegotiated payment terms with customers, have enhanced our cash flow management and will further stabilize our financial position.

Carbon Credits

Woodbois' commitment to expanding its carbon credit initiatives, including our afforestation-project of 50,000 hectares (as announced 11th April 2023), presents a significant opportunity, particularly within the framework of Gabon's vast forest resources.

Woodbois, with its extensive existing forest concessions in Gabon, is uniquely positioned to leverage this opportunity. The process of registering these forest areas for carbon credits has already begun, and the Company expects to complete this within the next six months.

Outlook for the Second Half of 2024

Woodbois Limited expects a stronger performance for the full year ending 31 December 2024, driven by improved revenue in the second half, operational efficiency, and cost-saving measures. The Company anticipates maintaining profitability following an improved EBITDAS in H1, supported by increased production. Additionally, the completion of carbon credit registration will provide a new revenue stream for 2025, aligning with our sustainability goals. Overall, Woodbois is on track for solid financial results and continued growth by year-end.

Looking ahead, we have secured agreements that ensure all of our increasing production will be sold at normal market prices for the remainder of the year. This strategic alignment will help to reduce the cost of sales, allowing us to improve our margins and further enhance profitability.

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").

¹Non-IFRS measures

The Company uses certain measures to assess the financial performance of the company. These terms may be defined as "non-IFRS measures" as they exclude amounts that are included in, or include amounts that are excluded from, the most directly comparable measure calculated and presented in accordance with IFRS. They also may not be calculated using financial measures that are in accordance with IFRS. These non-IFRS measures include the Company's EBITDAS.

The Company uses such measures to measure and monitor performance and liquidity, in presentations to the Board and as a basis for strategic planning and forecasting. The directors believe that these and similar measures are used widely by market participants, stakeholders, and other interested parties as supplemental measures of performance and liquidity.

The non-IFRS measures may not be directly comparable to other similarly titled measures used by other companies and may have limited use as an analytical tool. This should not be considered in isolation or as a substitute for analysis of the Company's operating results as reported under IFRS.

² Earnings before interest, tax, depreciation, amortization, share based payments & other non-cash items

³Working capital comprises cash and cash equivalents, trade & other receivables, inventory less trade & other payable and provisions

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the six months ended 30 June 2024

		Notes	Six months to 30 June 2024 (Unaudited) $'000	Six months to 30 June 2023 (Unaudited) $'000	Year to            31 December 2023 (Audited) $'000
Turnover			3,637	4,853	7,940
Cost of sales			(1,846)	(4,363)	(6,528)
Gross profit			1,791	490	1,411
Other income			-	1,399	1,434
Operating costs			(2,287)	(3,496)	(7,267)
Administrative expenses			(470)	(490)	(878)
Depreciation			(1,033)	(972)	(2,076)
Share based payment expense			(59)	37	(165)
Operating profit/(loss)			(2,058)	(3,032)	(7,210)
Elimination of negative equity (sale of Argento Mozambique)			997	-	-
Reclassification of FCTR			1,349	-	-
Foreign exchange gain/(loss)			-	317	137
Finance costs		4	(248)	(636)	(809)
(Loss)/profit before tax			40	(3,351)	(7,882)
Taxation		5	-	(13)	(243)
(Loss)/profit for the period			40	(3,364)	(8,125)
Other comprehensive income:
Items that will not be reclassified to profit or loss
Revaluation of land and buildings, net of tax			-	-	-
Items that may be reclassified subsequently to profit or loss
Currency translation differences			(1,005)	(1,448)	-
Reclassification of FCTR[1] on deregistered entities		15	(1,349)	-	(311)
Total comprehensive (loss)/income for the period			(2,314)	(4,812)	(8,436)
Basic (loss)/earnings per share (cents)		6	(0.06)	(0.13)	(0.24)
Diluted (loss)/earnings per share (cents)			(0.06)	(0.13)	(0.24)

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 June 2024

	Notes						30 June 2024 (Unaudited)	30 June 2023 (Unaudited)	31 December 2023 (Audited)
							$'000	$'000	$'000
ASSETS
Non-current assets
Biological assets							179,642	179,815	179,815
Property, plant and equipment							28,023	31,339	30,194
Total non-current assets							207,665	211,154	210,009
Current assets
Trade and other receivables	7						5,724	5,016	5,399
Inventory							3,852	2,074	1,771
Cash and cash equivalents							666	6,088	527
Total current assets							10,242	13,178	7,697
TOTAL ASSETS							217,907	224,332	217,706
LIABILITIES
Non-current liabilities
Borrowings	9						(221)	(3,201)	(292)
Deferred tax	5						(58,680)	(58,680)	(58,680)
Total non-current liabilities							(58.901)	(61,881)	(58,972)
Current liabilities
Trade and other payables	8						(3,903)	(4,007)	(3,205)
Borrowings	9						(3,881)	(1,560)	(3,562)
Provisions							-	(130)	-
Convertible bonds - host liability	10						-	(763)	-
Total current liabilities							(7,784)	(6,460)	(6,767)
TOTAL LIABILITIES					(66,685)			(68,341)	(65,739)
NET ASSETS					151,222			155,991	151,968
EQUITY
Share capital		11			35,876			35,799	35,842
Share premium			12		77,844			75,310	75,020
Convertible bonds - equity component		10			-			24	-
Foreign exchange reserve					(11,071)			(9,854)	(8,717)
Share based payment reserve					696			765	638
Revaluation reserve					6,254			6,254	6,254
Retained earnings					41,623			47,693	42,932
TOTAL EQUITY						151,222		155,991	151,968

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the six months ended 30 June 2024
2024
	Share capital	Share premium	Convertible bonds	Foreign exchange reserve	Share based payment reserve	Revaluation reserve	Retained Earnings	Total equity
	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000
Balance at 1 January 2023	32,625	65,549	24	(8,406)	802	6,254	51,057	147,904
Loss for the period	-	-	-	-	-	-	(3,364)	(3,364)
Other comprehensive income	-	-	-	(1,448)	-	-	-	(1,448)
Total comprehensive loss for the period	-	-	-	(1,448)	-	-	(3,364)	(4,811)
Transactions with owners:
Issue of ordinary shares	3,174	9,761	(28)	-	-	-	-	12,935
Share based payment expense	-	-	-	-	(37)	-	-	(37)
Balance at 30 June 2023	35,799	75,310	24	(9,854)	765	6,254	47,693	155,991
Loss for the period	-	-	-	1,137	-	-	(4,763)	(3,626)
Total comprehensive loss for the period	-	-	-	1,137	-	-	(4,763)	(3,626)
Transactions with owners:
Issue of ordinary shares	43	(290)	-	-	-	-	-	(247)
Redemption of CB's	-	-	(24)	-	-	-	-	(24)
Share based payment expense	-	-	-	-	(128)	-	-	(128)
Balance at 31 December 2023	35,842	75,020	-	(8,717)	637	6,254	42,932	151,968
Loss for the period	-	-	-	-	-	-	40	40
Other comprehensive income	-	-	-	(2,354)	-	-	-	(2,354)
Reclassification of FCTR	-	-	-	-		-	(1,349)	(1,349)
Total comprehensive loss for the period	-	-	-	(2,354)	-	-	(1,309)	(3,663)
Transactions with owners:
Issue of ordinary shares	34	2,824	-	-	-	-	-	2,858
Share based payment expense	-	-	-	-	59	-	-	59
Balance at 30 June 2024	35,876	77,844	-	(11,071)	696	6,254	41,623	151,222

CONDENSED CONSOLIDATED STATEMENT CASH FLOWS For the six months ended 30 June 2024
			Six months to 30 June 2024 (Unaudited)	Six months to 30 June 2023 (Unaudited)	Year to 31 December 2023 (Audited)
Cash flows from operating activities			$'000	$'000	$'000
Profit / (Loss) before taxation			40	(3,351)	(7,882)
Adjustment for:
Foreign exchange			-	(317)	(137)
Depreciation of property, plant and equipment			1,462	1,364	2,641
Fair value adjustment of biological asset			-	-	-
Transaction costs deducted from equity			-	(638)	-
Share based payment expense			59	(37)	(165)
Provision for bad debts			-	-	452
Elimination of negative equity  (sale of Argento Mozambique		)	(997)	-	-
Reclassification of FCTR			(1,349)	-	-
Finance costs			248	636	809
Accrued expense			-	91	-
Other income			-	(1,399)	(1,434)
Decrease/(increase) in trade and other receivables			(325)	1,314	558
Increase/(decrease) in trade and other payables			698	460	(1,177)
Decrease/(increase) in inventory			(2,081)	2,532	2,345
Cash inflow from operations			(2,245)	655	(3,990)
Income taxes paid			-	(2)	(152)
Finance cost paid			(175)	(253)	(592)
Net cash inflow/(outflow) from operating activities			(2,420)	(400)	(4,734)
Cash flows from investing activities
Expenditure on property, plant and equipment			(29)	(477)	(319)
Settlement of deferred consideration			-	-	-
Investment in acquired subsidiary			-	-	-
Net cash outflow from investing activities			(29)	(477)	(319)
Cash flows from financing activities
Proceeds from loans and borrowings			244	180	(6,929)
Repayment of loans and borrowings			(111)	(7,284)	-
Repayments of convertible bonds			-	-	(763)
Proceeds from the issue of ordinary shares			1,957	10,973	10,976
Net cash inflow from financing activities			2,090	3,869	3,284
Net increase in cash and cash equivalents			139	3,792	(1,769)
Cash and cash equivalents at the start of period			527	2,296	2,296
Cash and cash equivalents at the end of the period			666	6,088	527

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS  

For the six months ended 30 June 2024 

1. BASIS OF PREPARATION 

The condensed consolidated interim financial statements ('interim financial statements') for the six months ended 30 June 2024 have been prepared in accordance with the requirements of the AIM Rules for Companies. As permitted, the Group has chosen not to adopt IAS 34 "Interim Financial Statements" in preparing this interim financial information. The interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2023, which have been prepared in accordance with international accounting standards in accordance with the requirements of the Companies (Guernsey) Law 2008 applicable to Companies reporting under IFRS as adopted by the United Kingdom (UK). The interim financial statements have been prepared under the historical cost convention except for biological assets and certain financial assets and liabilities, which have been measured at fair value. 

The interim financial statements of Woodbois Limited are unaudited financial statements for the six months ended 30 June 2024. These include unaudited comparatives for the six-month ended 30 June 2023 together with audited comparatives for the year to 31 December 2023. The condensed financial statements do not constitute statutory accounts, as defined under section 244 of the Companies (Guernsey) Law 2008. The statutory accounts for the period to 31 December 2023, which were approved by the Board of Directors on 28 June 2024, have been reported on by the Group's auditors and have been delivered to the Guernsey Registrar of Companies. The report of the auditors on those financial statements was unqualified.

The accounting policies applied in preparing these financial statements are in terms of IFRS and are consistent with those applied in the previous annual financial statements for the year ended 31 December 2023. 

The interim financial statements for the six months ended 30 June 2024 were approved by the Board of Directors on 23 September 2024. 

Going Concern: 

The interim financial statements have been prepared assuming that the Group will continue as a going concern in accordance with the recognition and measurement criteria of IFRS.  

Under this assumption, an entity is ordinarily viewed as continuing in business for the foreseeable future with neither the intention nor necessity of liquidation, ceasing trading or seeking protection from creditors for at least 12 months from the date of the signing of the financial statements.  

An assessment of going concern is made by the Directors at the date they Directors approve the interim financial statements, taking into account the relevant facts and circumstances at that date including:  

• The current state of the Group's life cycle; 

• Review of profit and cash flow forecasts;  

• Review of actual results against forecast;  

• Timing of cash flows and expected availability of capital including trade finance; 

• Financial or operational risks; and 

•The current impact of the coup in Gabon in August 2023 

The Directors have a reasonable expectation that the Group has or will have adequate resources to continue in operational existence for the foreseeable future, being 12 months from the date of approval of these interim financial statements and have therefore adopted the going concern basis of preparation in the interim financial statements. 

2. CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGEMENT 

The preparation of financial statements in conformity with IFRS requires management to make estimates and assumptions concerning the future. It also requires management to exercise judgment in applying the Company's accounting policies and the reported amounts of assets and liabilities, revenue and expenses, and related disclosures.  

Estimates and judgments are continually evaluated and are based on current facts, historical experience and other factors, including expectations of future events that are believed are reasonable under the circumstances. Accounting estimates will, by definition, seldom equal the actual results.  

Except for the additional disclosure as noted above, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those described in the last annual report. 

3. SEGMENT REPORTING 

Segmental information is presented on the basis of the information provided to the Chief Operating Decision Maker ("CODM"), which is the Executive Board.   

The Group is currently focused on Forestry, Timber Trading and Carbon Solutions. These are the Group's primary reporting segments, operating in Gabon, Denmark, London, and Guernsey.  Certain support services are performed in the UK. 

The Group's CEO and CFO review the internal management reports of each division at least weekly, and the Board monthly. 

There are varying levels of integration between the Forestry and Trading segments. This integration includes transfers of sawn timber and veneer, respectively. Inter-segment pricing is determined on an arm's length basis. 

Information relating to each reportable segment is set out below. Segment profit/(loss) before tax is used to measure performance, because management believes that this information is the most relevant in evaluating the results of the respective segments relative to other entities that operate in the same industry. All amounts are disclosed after taking into account any intra-segment and intra-group eliminations. 

The following table shows the segment analysis of the Group's loss before tax for the six months period and net assets as at 30 June 2024:

	Forestry	Trading	Carbon Solutions	Total
	$000	$000	$000	$000
INCOME STATEMENT
Turnover	2,999	638	-	3,637
Cost of Sales	(1,254)	(592)	-	(1,846)
Gross profit	1.745	46	-	1.791
Other income	-	-	-	-
Operating costs	(1,392)	(797)	(98)	(2,287)
Administrative expenses	(206)	(157)	(107)	(470)
Depreciation	(987)	(46)	-	(1,033)
Share based payment expense	(30)	(17)	(12)	(59)
Elimination of negative equity  (sale of Argento Mozambique)	997	-	-	997
Reclassification of FCTR	1,349	-	-	1,349
Segment operating (loss)/profit	1,476	(971	(217)	288
Finance costs	(160)	(88)	-	(248)
(Loss)/profit before taxation	1,316	(1,059)	(217)	40
Taxation expense	-	-	-	-
(Loss)/profit for the period	1,316	(1,059)	(217)	40
NET ASSETS
Assets:	214,447	3,460	-	217,907
Liabilities:	(3,279)	(4,726)	-	(8,005)
Deferred tax liability	(58,680)	-	-	(58,680)
Net assets	152,488	(1,266)	-	151,222

The following table shows the segment analysis of the Group's loss before tax for the six months period and net assets as at 30 June 2023:

	Forestry	Trading	Carbon Solutions	Total
	$000	$000	$000	$000
INCOME STATEMENT
Turnover	4,456	397	-	4,853
Cost of Sales	(3,960)	(403)	-	(4,363)
Gross profit	496	(6)	-	490
Other income	-	1,399	-	1,399
Operating costs	(2,662)	(641)	(193)	(3,496)
Administrative expenses	(138)	(176)	(176)	(490)
Depreciation	(909)	(63)	-	(972)
Share based payment expense	15	11	11	37
Segment operating (loss)/profit	(3,198)	524	(358)	(3,032)
Foreign exchange	291	26	-	317
Finance costs	(351)	(285)	-	(636)
(Loss)/profit before taxation	(3,258)	265	(358)	(3,351)
Taxation expense	(13)	-	-	(13)
(Loss)/profit for the period	(3,271)	265	(358)	(3,364)
NET ASSETS
Assets:	218,024	6,308	-	224,332
Liabilities:	(4,957)	(4,704)	-	(9,661)
Deferred tax liability	(58,680)	-	-	(58,680)
Net assets	154,387	1,604	-	155,991

4.  FINANCE COST

	6 months to 30 June 2024 (Unaudited)	6 months to 30 June 2023 (Unaudited)	Year to  31 December 2023 (Audited)
	$'000	$'000	$'000
Interest on bank facilities	239	492	516
Working capital facility interest	9	128	278
Interest on convertible bonds	-	16	15
Total	248	636	809

5.  TAXATION

The prevailing tax rates in the geographies here the Group operates range between 3% and 32%. A rate of 19% best represents the weighted average tax rate experienced by the Group. As at 31 December 2023, the Group had estimated losses of $34 million (2022: $26 million) available to carry forward against future taxable profits. No deferred tax asset has been raised on these estimated losses.

The Group has recognised a net deferred tax liability of $58.7 million at 30 June 2024 (30 June 2023: $58.7 million, 31 December 2023 : $58.7 million) and which mainly arose on the revaluation of biological assets and owner occupied land and buildings. This would only be payable on the sale of these assets at their book value.

6.  EARNINGS PER SHARE

			6 months to 30 June 2024 (Unaudited)	6 months to  30 June 2023 (Unaudited)
			$'000	$'000
Loss attributable to equity shareholders			(2,314)	(3,364)
Weighted average number of ordinary shares in issue ('000)			3,454,412	2,651,565
Basic and diluted loss per share (cents)			(0.07)	(0.13)

The Company has incurred a loss in the six-month period to 30 June 2024, and therefore the diluted earnings per share is the same as the basic loss per share as the loss has an anti-dilutive effect.

Reconciliation of shares in issue to weighted average number of ordinary shares:

		6 months 30 June 2024 (Unaudited)	6 months 30 June  2023 (Unaudited)
		$'000	$'000
Shares in issue at beginning of period		4,289,989	2,489,989
Shares issued during the period weighted for period in issue (note 11)		260,000	145,836
Weighted average number of ordinary shares in issue for the period		4,549,989	2,635,825

7. TRADE AND OTHER RECEIVABLES

	30 June 2024 (Unaudited)	30 June  2023 (Unaudited)	31 December 2023 (Audited)
	$'000	$'000	$'000
Trade receivables	4,568	3,571	3,794
Other receivables	310	12	337
Deposits	288	123	372
Current tax receivable	-	15	16
VAT receivable	308	286	379
Prepayments	254	1,009	502
Total	5,724	5,016	5,400

The Directors consider that the carrying amount of trade and other receivables approximates to their fair value.

8. TRADE AND OTHER PAYABLES

	30 June 2024 (Unaudited)	30 June 2023 (Unaudited)	31 December 2023 (Audited)
	$'000	$'000	$'000
Trade payables	1,370	2,288	1,145
Contract liabilities (prepayments received)	429	508	750
Accruals	723	493	1,039
Current tax payable	147	379	132
Tax liabilities and other payables Gabon	1,214	-	-
Other payables	7	326	7
Debt due to concession holders	13	13	1
Total	3,903	4,007	3,074

The Directors consider that the carrying amount of trade and other payables approximates to their fair value.

9.  BORROWINGS

	30 June 2024 (Unaudited)	30 June 2023 (Unaudited)	31 December 2023 (Audited)
	$'000	$'000	$'000
Non-current liabilities
Business loans	137	528	292
Bank facility	-	-	-
Working capital facility	84	2,673	-
	221	3,201	292
Current liabilities
Business loans	1,581	770	1,529
Bank facility	387	390	80
Working capital facility	1,913	400	1,954
	3,881	1,560	3,563
Total borrowings	4,102	4,761	3,855

The increase in borrowings in the six months to 30 June 2024 when compared to 31 December 2023 is mainly due to an extension of the BGFI current account credit.

The Nykredit/EKF loan has been classified as a current liability due to the obligation to repay this facility within the next 12 months. While this is a scheduled repayment, we remain confident that an agreement with Nykredit will be finalized, allowing us to reimburse the loan through incoming revenues. Discussions are ongoing, and we expect to secure terms that align with the Company's financial strategy.

10. CONVERTIBLE BONDS

	30 June      2024 (Unaudited)	30 June       2023 (Unaudited)	31 December 2023 (Audited)
	$'000	$'000	$'000
Convertible bonds: Liability component	-	739	-
Convertible bonds: Equity component	-	24	-
Total	-	763	-
Convertible bond liability	-	477	-
Interest accrued	-	262	-
Total	-	739	-

The Bonds were repaid on 5 July 2023.

11. SHARE CAPITAL 

	Number	$'000
Authorised:
Ordinary shares of 0.01p pence each*	Unlimited	Unlimited*
Allotted, issued and fully paid: Ordinary shares of 0.01p each*
At 1 January 2023	2,489,988,873	32,625
Shares issued	1,800,000,000	3,217
At 31 December 2023	4,289,988,873	35,842
Issued in the period	260,000000	34
At 30 June 2024	4,549,988,873	35,876

* See note below: nominal value of ordinary shares reduced from 1.0p in June 2023 to 0.01p and a deferred share of 0.99p. The deferred shares were redeemed at no cost by the Company.

Balances classified as share capital represent the nominal value on issue of the Company's equity share capital, comprising ordinary shares of 1p each.

The total number of Ordinary Shares in issue as at the date of this report is 4,549,988,873, which consists of 3,945,850,726 Voting Ordinary Shares, 19,138,147 Treasury Shares and 585,000,000 Non-Voting Ordinary Shares.

ORDINARY SHARES

The Company has issued 260 million new ordinary shares of 0.01p nominal value each ("New Ordinary Shares")

12. SHARE PREMIUM                                                                                                               

		$'000
At 1 January 2023		65,549
Issued in the period		9,471
At 31 December 2023		75,020
Issued in the period		2,824
At 30 June 2024		77,844

Balances classified as share premium include the net proceeds in excess of the nominal share capital on issue of the Company's equity share capital.

13.  OTHER INCOME

Other income represents settlement gains realised on termination of banking and other facilities.

14.  INTERIM FINANCIAL STATEMENTS

A copy of this interim report as well as the full Annual Report for the year ended 31 December 2023 can be found on the Company's website at www.woodbois.com.

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[1] Foreign Currency Translation Reserve

 

END