Woodbois cuts losses on improved revenues and reduced costs

Hardwood products manufacturer Woodbois saw first half gross profits soar and total losses narrow, putting the group on track to turn cash-flow positive.

Woodbois' gross profits grew 83% to $1.3m in the six months ended 30 June, helping the group cut total losses 38% to $3.4m. Losses per share were narrowed to $0.92 from $1.49.

The AIM-listed firm reported a 41% uptick in revenues to $9.3m at its natural forest concessions in Gabon and Mozambique.

Woodbois also said that after simplifying its corporate structure, including offloading some of its agriculture operations in Tanzania, its cost reduction programme was now "largely complete" and helped lead it to a 69% drop in administrative expenses to $759,000.

Looking forward, while Woodbois intends to continue to focus on quality and sustainability, the group said its next target was to become cash-flow positive in the near-term.

"Achieving this objective will require us to operate our production facilities with enhanced efficiency and at full capacity, to scale the trading business while optimising the deployment of all available trade finance and to continue to manage costs aggressively across the group," said Woodbois.

As of 1110 BST, Woodbois shares had fallen 3.04% to 5.43p.