11th Jul 2019 17:44
(Alliance News) - Woodbois Ltd on Thursday announced the immediate departure of its non-executive chair and an increase in revenue in the first half of 2019 as growth in trading overcame a timber export ban in Gabon.
Miles Pelham, the largest shareholder in Woodbois, departs immediately as his Diginex Ltd blockchain company is about to list on the Nasdaq with Pelham as executive chair.
Non-Executive Director Kevin Milne has been chosen as interim chair while Woodbois seeks a permanent replacement for Pelham.
Revenue for the six months to June 30 was USD9.2 million, 39% ahead of the USD6.6 million posted by the African focused forestry and timber trader the year before.
This included second quarter revenue of USD4.7 million, a record quarter for the company. This USD4.7 million included USD3.2 million of trading revenue, a 60% year-on-year increase from USD2 million.
This improvement was particularly notable as Gabon suspended all timber exports in March after 300 containers of the Kevazingo species of tree, export of which was banned in 2018, were discovered. Timber export has now been approved to resume.
"The shortfall in revenues from export of our own production in Gabon was compensated for by growth in trading, which was supported by inflows to our internal trading fund," Woodbois said.
In addition, Woodbois said it has not yet received the initial proceeds due under its payment schedule with Envision Consulting Ltd. Envision initially agreed to pay USD2.5 million in cash for Woodbois's Tanzanian agriculture business - an amount which was then amended to USD2.0 million when Envision agreed to assume a loan. The first USD250,000 was payable April 30, followed by 11 more USD204,545 payments commencing July 30.
"We are currently in discussions with Envision to restructure the payment schedule. The group has no ongoing cost commitment in Tanzania," said Woodbois.
Woodbois is also planning to restructure its 5% perpetual preference share in its Argento subsidiary by buying it back and issuing convertible bonds from Woodbois instead. The Woodbois bonds are to have a tenure of 5 years, plus a 4% coupon and conversion price of 8 pence. 97% of preference shareholder have accepted the terms of the exchange.
Woodbois has also appointed Graeme Thomson as an Independent Non-Executive Director and audit committee chair. The company said Thomson "has been a public company director for many decades, as a CEO, CFO/company secretary and as a non-executive".
Shares in Woodbois closed up 2.5% at 6.15 pence on Thursday.
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