7th Jan 2020 11:20
(Alliance News) - Woodbois Ltd on Tuesday reported a sharp increase year-on-year in revenue for the fourth quarter of 2019, and also a record number for the annual period itself.
For the three months to the end of December, the Africa-focused forestry and timber trader reported revenue of USD5.8 million, up 57% from USD3.7 million the same period the year before.
In Woodbois's trading division, revenue grew following the increased utilisation of the internal trading fund facility, and the expansion of the company's supplier network to meet global demand.
Meanwhile in the forestry division, Woodbois said it was able to complete all civil works needed to house sawmilling equipment on schedule and within budget, following the installation of kiln drying facilities in Gabon.
As a result of the new equipment, Woodbois reported an improvement in yield over the quarter to 41% from 33%. Looking ahead, the company expects to report further improvement, and has set a target of 44% yield for the first quarter of 2020.
For 2019 as a whole, Woodbois expects to report revenue at USD20 million, up 49% from USD13.4 million the prior year.
"The business has continued its rapid and consistent growth path throughout 2019 with revenues once again rebased year-on-year. Management have also executed effectively on the group's capital expenditure led strategic plans, building Woodbois brand value and positioning the group to achieve significant levels of growth and profitability in the decade ahead," said
"While aiming to continue the delivery of significant levels of top-line growth during 2020, the group will also implement measures to strengthen its cash balance and improve margins, while further leveraging its fixed cost base to improve overall profitability," Dolan added.
Shares in Woodbois - which is headquartered in London - were up 6.3% at 5.90 pence on Tuesday.
By Dayo Laniyan; [email protected]
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