Woodbois Limited - Quarterly Update
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014.
• Record quarterly revenues with
• Record quarterly revenues of
• Record quarter of export of own production sawn timber and veneer with 120 containers shipped.
• New kilns completed on schedule and operational in
• Upgraded sawmill in
• Membership of
Consistent revenue growth
Record quarterly revenues of
Record quarterly revenues of
By way of context, while pricing of some more expensive species has fallen by around 10% during 2019, global demand for African hardwood logs has remained consistent despite the backdrop of an economic slowdown in
Our trading strategy is to actively engage with and support suppliers who operate within clearly defined sustainability guidelines verified by accredited independent 3rd party auditors. Advising these suppliers on technical specifications, and how to achieve the standards of compliance required in order to access international markets helps to improve their margins and enables us to lock in long-term contracts, increasing certainty for both parties.
The completion of the installation of drying kilns at our sawmill in Mouila in September saw a major milestone reached and shareholder value created. We anticipate margin improvement of around 8% from sawn timber as a result of bringing this activity in house, with a further 2% margin increase from reduced logistics costs.
Thanks to months of research and planning, the lead-time from order to installation was impressively quick. I'm also pleased to report that the level of support throughout the process from Techdry, the Chinese manufacturer, has been nothing short of excellent. I look forward to ordering more kilns from Techdry as we expand capacity in
Focus is now on installation of the new production lines to upgrade the sawmill in Mouila which are scheduled for completion during the current quarter. Once all of these major works are completed, and with a year of 'learning by doing' under our belts at the veneer factory, an expectation of revenue and profitability growth from our production facilities in 2020 would appear to be justified.
While management focus has understandably been largely on expanding the trading operation and upgrading facilities in
Envision, the Tanzanian entity which purchased the Tanzanian agriculture business from us, has not yet paid the initial proceeds in accordance with the payment schedule agreed in the Sale and Purchase agreement ("SPA"). The legal action that we had commenced against Envision has now been stayed until the end of 2019 to allow for mediation between the parties with the objective of giving Envision the time required to secure the funds required to meet their commitments as set out within the SPA. The Group is still settling outstanding creditors (circa
Preference Share Restructure into 4% Convertible Bond
The board resolved to approve the proposed restructure of the 5% perpetual preference shares in
A Closing Date of
Finally, I'm very pleased to announce that
The partnership promotes economic development, poverty alleviation, and effective governance through the conservation and sustainable management of natural resources, including forests and wildlife. The CBFP, established at the 2002 World Summit on
Given the importance that our customers attach to using only sustainable hardwood products, it is both important and valuable for
We still have much to achieve this year as we enter the home straight of 2019, but we draw great encouragement from all that has been achieved during the year to date and the consistent progression and evolution of the business. Thank you for taking the time to read this report and for your ongoing support.
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Market Cap: £14.09 m
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