Operational Update & Investor Presentation

RNS Number : 2025H

Woodbois Limited

02 December 2020

 

2 December 2020

Woodbois Limited

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

Operational and Corporate Update

Notice of Investor Presentation

Woodbois, the African focused sustainable forestry and timber trading company, is today providing an operational and corporate update.

Continuing operational progress post financial restructuring

Since the publication of its Q3 Update in early October, the Company has continued to make solid progress across both its trading arm, as global demand for sustainably sourced hardwood has started to rebound, and at its production division which increased output in October and November by 41% over the previous quarter's average.  Despite the pandemic continuing to impact the freedom of movement of people and product, Woodbois continues to operate as efficiently as related safety protocols will allow.

The balance sheet restructuring completed in August, which saw Woodbois' net debt reduced from US$49.9m to US$1.1m, continues to drive down interest costs, with Woodbois remaining on track for a 90% interest cost saving in Q4 2020 versus Q2 2020, the last full quarter prior to the restructuring. Cash balances at the end of November were $3.5m, bank and similar debt was $7.5m and working capital stood at $11m.

As a result of the ongoing COVID situation, and in particular shipping container constraints, the Company now expects that approximately US$2m of turnover that was expected to be recorded in Q4 will now not occur until next year.  As a result of this COVID related deferment, the Company now expects turnover for the full year 2020 to be in the region of US$15m. Management's earnings expectations for 2020 remain unchanged.

Strengthening of production and trading teams

Woodbois is pleased to have made two notable hires.

Rémy Cazeau has been appointed as Production Director, Gabon. Rémy has over 20 years' experience managing and optimising hardwood production facilities, including working in equatorial Africa. Rémy brings a deep understanding of the requirements of the construction industry and holds a Masters degree in Technical Innovation and Industrial Management. His appointment is anticipated to further unlock the operational leverage that has been built into the business from recent capex, as well as from the significant levels of new equipment that will come online during 2021.   

Jake Slocombe joins Woodbois' trading team as Head of Sales: UK and US.  Jake has an impressive track record in digital advertising sales, and his application of new economy skills to drive growth will help maximise the potential of Woodbois' proprietary trading technology, developed over the last 18 months .  Jake, who graduated with a First Class degree from Thomas University, Georgia US, will also spearhead Woodbois' entry into the US market.

Remy and Jake will report into the current Gabon Country manager and the CEO respectively and are non-board positions. Additional personnel have been identified and we expect to be able to announce further quality additions to the team for key roles in the near future.

Investor Presentation - 9 December 2020

Given recent investor interest, Woodbois will host a webcast on Wednesday 9th December at 10.30am UK.  The webcast will be hosted by Paul Dolan, Chairman and CEO, and will include a brief presentation recapping on progress made during 2020 and looking ahead to 2021, followed by a Q&A session.  No new material information will be provided. The session can be accessed on the Investor Meet Company platform.  People wishing to join are requested to register in advance

https://www.investormeetcompany.com/woodbois-limited/register-investor  

Commenting on today's announcement, Executive Chairman and CEO Paul Dolan said: 

"Despite a challenging operational backdrop, we continue to push the restructured business forwards, focusing our efforts on increasing production from Gabon and capturing the opportunity to transform the way hardwood timber is traded.  We continue to be affected by the COVID situation, which has resulted in the deferral of a portion of sales rolling into next year.  However, the Board firmly believes that this short-term impact is eclipsed by the outlook for sustainable hardwood, which sees increasing demand for quality product with clear traceability. We are ensuring we are set to capture the opportunity for the benefit of our shareholders and the countries in which we operate.

Rémy and Jake are very strong additions to the team.  They represent extremely high-quality hires and are set to further enhance both our operational processes, and on the trading side, to ensure an unrivalled cutting-edge trading standard. On behalf of everyone at Woodbois, I welcome them to the team and look forward to their contribution to our continuing growth.   

As part of our commitment to open and regular engagement with our shareholders, we look forward to hosting the webcast on 9th December."

Enquiries:

Woodbois Limited Paul Dolan - Chairman and CEO	+ 44 (0)20 7099 1940
Canaccord Genuity, Nominated Advisor Henry Fitzgerald-O'Connor James Asensio Thomas Diehl	+ 44 (0)20 7523 8000
Celicourt Communications (IR / PR) Mark Antelme Jimmy Lea	[phone] [e-mail]

Background on Woodbois

Woodbois Limited (AIM:WBI) is an African focused forestry and timber trading company, which produces, processes, manufactures and distributes sustainable African hardwoods and hardwood products to customers around the world.

Woodbois' forestry division has production facilities in Gabon and Mozambique, managing a total of c400,000 hectares of natural forest concessions. The trading division comprises a highly experienced team of timber specialists, who source and supply sustainable timber to a global customer base. Its proprietary technology developed in house, captures, stores and presents data, providing a matching engine to build scale and optimise trading opportunities.

Sustainability is at the heart of the business, with a clear focus on maintaining the transparency and sustainability of its timber operations. This has been recognised by The Zoological Society of London, which ranked Woodbois third in its Sustainability Policy Transparency Toolkit ('SPOTT'') ESG policy transparency assessments for the worldwide timber and pulp industries for 2020.

 

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