(Alliance News) – Woodbois Ltd said on Friday it was emerging with a “more streamlined focus and strengthened strategy” after what the company described as one of the most challenging years in its history.
The Guernsey-based African timber trader said its pre-tax loss narrowed to $7.9 million in 2023 from $158.9 million in the previous year, when the company incurred a $157.0 million loss on the fair value of biological assets.
Woodbois shares rose 1.2% to 0.42 pence each in London on Friday morning.
Revenue fell 66%, from $23.1 million to $7.9 million, while operating costs increased 74%, from $4.2 million to $7.3 million. USD.
During the period, the company reduced its current borrowings by 59%, from USD 8.6 million to USD 3.6 million, as well as its non-current borrowings by 95%, from USD 5.7 million to 292 000 USD.
Mr Woodbois attributed the decline in turnover to a series of operational challenges. These include the withdrawal of a critical USD 6 million credit line in April 2023, which resulted in a temporary liquidity crisis until remedied through a private fundraising and exchange of debts against shares.
Additionally, production was affected by shutdowns aimed at optimizing workflows and addressing inefficiencies. Disruptions caused by Gabon’s August military coup also hampered operations and limited exports.
“Last January, we implemented a complete overhaul of our operations in Gabon following critical failures within local management,” said Guido Theuns, president and CEO. “To ensure a successful turnaround, we replaced the entire management team in Gabon and introduced new procedures and real-time controls that strengthen the efficiency and oversight of operations.
“Looking ahead to 2024, our strategic initiatives will focus on maximizing production, streamlining operations, achieving positive cash flow and increasing the value of our forest resources, both organically and, where beneficial, through consolidation of M&A activity.”
Since the end of the period, the company entered into a $5 million commercial financing deal with a Dubai family in June, and exercised warrants at 1.0 pence per share to generate $2.0 million. pounds sterling which will be used to increase production.
By Elijah Dale, Alliance News reporter
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