Woodbois Ltd (LON:WBI), in a quarterly update, told investors it has a strong platform to build on following August’s transformational balance sheet restructuring.
The company achieved its revised revenue target of US$15mln for 2020, with US$3.2mln generated in the fourth quarter.
It highlighted that it is funded to achieve near term growth objectives with US$2.56mln of cash at the end of December. Working capital was marked at US$9mln.
Woodbois highlighted that its underlying profitability was ahead of expectation prior to write-downs against inventory.
The company noted that it produced 2,030 cubic metres of sawn timber in the quarter, and 569 cubic metres of veneer production. Shipments were impacted by constraints in the worldwide freight container market.
It expects to turn cashflow positive, deliver profitability and generate significant revenue growth in 2021.
“Following the transformational balance sheet restructuring completed in August and its subsequent financial benefits, we have given ourselves a strong platform to build on and we intend to deliver significant growth in 2021,” said Paul Dolan, Woodbois chief executive.
“We remain well financed and our further strengthening of the operational team during Q4 and in 2021 means that we are well placed to capture the opportunities and build shareholder value.”
Dolan added: “The demand for sustainably sourced timber continues to grow and we believe that our current footprint in Africa, the investment in equipment, processes and industry leading staff, combine to ensure we are uniquely well placed to increase our market share in global sales and trading.
“The board remains confident of Woodbois’ ability to meet its objective of profitably becoming one of the leaders of the sustainable African hardwood sector.”
The company noted a theft of US$2mln worth of inventory was discovered at a third party warehouse in Ivory Coast, and, said it is investigating.
Dolan, meanwhile, commented: “Whilst recently being victims of a theft in Ivory Coast is highly disconcerting, we believe this to have been an isolated and opportunist incident. It does not directly impact the vast majority of the business, consisting primarily of our own forestry concessions and production in Gabon and other third party trading, and we continue to expect to be increasingly profitable from 2021 onwards.”