-Woodbois Ltd on Friday said it emerges with a ‘more streamlined focus and a solidified strategy’ after what the firm described as one of the most challenging years in its history.
The Guernsey-based trader of African timber said that in 2023, pretax loss narrowed to $7.9 million from $158.9 million the previous year when the company incurred a $157.0 million loss on fair value of biological assets.
Woodbois shares rose 1.2% to 0.42 pence each in London on Friday morning.
Turnover dropped 66% to $7.9 million from $23.1 million, while operating costs rose 74% to $7.3 million from $4.2 million.
Over the period, the company reduced current borrowings by 59% to $3.6 million from $8.6, as well as non-current borrowings by 95% to $292,000 from $5.7 million.
Woodbois attributed the fall in turnover to a range of operational challenges. These included the withdrawal of a $6 million critical credit line in April 2023 which resulted in a temporary liquidity crisis until remedied by a private equity raise and debt for equity swap.
Furthermore, production was impacted by shutdowns aimed at optimising workflows and addressing inefficiencies. Disruptions caused by August’s military coup in Gabon further hindered operations and limited exports.
‘This January, we implemented a comprehensive overhaul of our Gabon operations following critical failures within local management,’ Chief Executive Officer Guido Theuns said. ‘To ensure a successful turnaround, we have replaced the complete management team in Gabon and introduced new real-time procedures and controls that bolster operational efficiency and oversight.
‘Looking deeper into 2024, our strategic initiatives will focus on maximising production, streamlining operations, becoming cash-flow positive and expanding the value of our forest resources, both organically and, where advantageous, through consolidating mergers & acquisition activity.’
Since period end, the company entered into a $5 million trade finance facility with a Dubai family in June, and exercised warrants at 1.0 pence per share to generate £2.0 million for use in scaling up production.
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