12 June 2024
WOODBOIS LIMITED
("Woodbois", the "Group", the "Company")
Board
Changes
Gabon
Operations
Mozambique Operations
Divested
Woodbois Ltd (AIM:WBI), a leading
Company in the international timber industry, announces the
following:
Board Changes
As part of the Group reorganisation
which commenced in January 2024, Carnel Geddes (CFO) and Graeme
Thomson (INED) have decided that after 7- and 5-years' service
respectively and for personal reasons, they do not wish to offer
themselves for re-election at the 2024 AGM and will accordingly
step-down as Directors by then. Woodbois is fortunate that they
have agreed to remain involved and available for a short period to
help with handover matters.
Subject to final completion of the
usual regulatory checks a new Independent Non-Executive Director is
expected to be announced shortly. Woodbois is also recruiting a
further independent NED and will appoint a new CFO; it intends to
announce these as soon as possible. The Group has a current
non-Board Interim Head of Finance, who has been with the Group
since January 2024.
The Group intends to consolidate its
Group finance, trading and other central functions as it reduces
its disparate offices outside of Gabon and eliminating superfluous
subsidiaries in Hong Kong and Liberia, as well as those in
Mozambique as noted below.
Gabon Operations
The Group has restructured its Gabon
Operation in a positive way, with management changes bringing in a
new Director General, a Director General Adjoint for the Mouila
operations and a new Human Resource Manager for the
Group.
Further, the Company has:
- withdrawn
from uneconomic and burdensome business activities;
- materially
reduced its local headcount (particularly of non-nationals) and
hence costs;
- ceased
sub-standard operational practices, with a focus on health and
safety, transparency and on controls;
- focused on
carrying-out repairs/upgrades of machinery and hiring specific
skills to permit double shifts and maximise output;
-
re-modelled its integrated activities from the forest to final
customer, ahead of planned increases in its own-production in the
latter part of the year;
-
devoted much senior management time to ensuring we
have good relations at all levels of governmental
authorities.
So far in 2024 whilst implementing
new management, procedures, procurement, replacing equipment and
maintenance the Group was still able to maintain daily production
around H1 2023 levels, with the sawmill averaging 37 m3/working day
and in the veneer factory averaging 18 m3/working
day. The operations are being readied
for a planned major and sustainable increase to record levels in
the second half of 2024.
The Company is completing final
legal documentation for a new $5m trade finance facility on better
terms than envisaged when provisionally announced in February 2024.
Further announcements will be made in due course when the Company
executes the trade finance facility. The Company is also exploring
further working capital financing options to enable it to upgrade
machinery, introduce a second shift, secure certification and for
general purposes.
Sale of Mozambique Operations
Further to the statement dated 13
March 2024 and as part of its reorganization and focus on
profitability, the Group has completed a Sale Agreement ("SA") for
all the legal entities associated with its Mozambique operations to
a local purchaser. These operations accounted for less than 1 per
cent. of Group turnover and net assets for the year ended 31
December 2022. The consideration of $1.0m is payable in
installments, through to mid-2030. There is also a sliding scale
share of any follow-on sales proceeds of up to 80% of the uplift in
value if on-sold by the buyer within two years of the SA
date.
Guido Theuns, Executive Chair & CEO,
said
"I am very sorry to say goodbye to
Carnel and Graeme, who have been excellent, supportive and
professional colleagues, both to me and past management: we shall
miss them both. However, with their and other departures we need to
continue to look forward as we implement the fresh vision, strategy
and business model started at the start of 2024 and move towards a
streamlined and expanding Group. We are primed ready for growth and
a refreshed Board. Recruitment towards centralising cost-effective
finance, trading and support activities is well underway.
In Gabon, whilst there has been much
change, I am pleased with the new focus towards a future of
best-in-class and rewarding activity. There has, of course, been
some resistance to new ways and it is always uncomfortable losing
colleagues in the Group, but it is clear that change was inevitable
and necessary.
Our detailed work on re-shaping
Woodbois is proceeding at pace and we are also selectively
assessing expansion opportunities. I am confident that the
necessary and appropriate financial resources will be available to
achieve this.
We will have a full update with the
2023 results later in the month but I reassure shareholders that
every effort is being made to ensure that the Group's inherent
value is revealed and will be realised."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014 which forms part of UK
law by virtue of the European Union (Withdrawal) Act 2018
("MAR").
Woodbois Limited
Guido Theuns, Executive Chair &
CEO
Carnel Geddes, CFO
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+ 44 (0)20 7099 1940
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Canaccord Genuity (Nominated Advisor and
Broker)
Bobbie Hilliam, Harry Pardoe
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+ 44 (0)20 7523 8000
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Novum Securities (Joint Broker)
Colin Rowbury, Jon Bellis
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+44 (0) 20 7399 9427
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Axis Capital Markets Limited (Joint Broker)
Ben Tadd, Lewis Jones
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+44 (0) 203 026 0449
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About Woodbois:
Woodbois is a Guernsey-based
company at the forefront of the timber industry, committed to
delivering quality products and sustainable solutions. With a
legacy of innovation and a vision for the future, it strives to set
industry standards and exceed expectations. Please follow the Company on X: @WoodboisLtd