Woodbois Ltd (AIM:WBI, OTC:WODBF) posted final results for 2022 showing a tripling in underlying earnings that chief executive Paul Dolan said “clearly point to the growth potential of the group”.
Turnover for the calendar year increased 32% to US$23.1mln, as revealed at the year-end, of which the forestry division generated 66% and third-party trading was 34%.
Gross profit increased 69% to US$5.9mln and underlying earnings (EBITDAS) leapt to US$3.3mln from US$1mln the year before.
However, a net loss of US$111.2mln was reported, principally driven by the company's biological assets being revalued down by a non-cash amount of US$108.7mln, while one of the group's banking facilities, held by a Danish bank Sydbank, was withdrawn post year-end and created “critical cashflow pressures”.
At the end of December, the cash balance was US$2.3mln and in March a fundraise of US$3.4mln was completed.
Earlier this week, Woodbois said it has reached an agreement with Sydbank to repay its outstanding balances by 29 December 2023.
Dolan said: “The business has been greatly interrupted in 2023 by unforeseen events announced previously. We are confident that, subject to a successful refinancing, of which we remain confident but which cannot be guaranteed, our previously established growth trajectory and improvement in profitability can resume.”
The company said multiple funding offers have been received, including debt, equity and hybrid structures and a decision will be made “in the coming weeks”.
Management currently intend to continue building out the three divisions of forestry, trading and carbon, but future direction may be influenced by the quantum of refinancing funding received and the expectations of its providers.
Following a difficult first quarter of 2023, revenue in the first half is expected to be lower than previously forecast, but the company said if it can obtain alternative finance, optimism remains for the second half.