Woodbois Q1 revenues surge

Forestry and timber trading firm Woodbois said on Wednesday that revenues had shot up in the first quarter of the current trading year despite trading in a "challenging global economic environment" as a result of the Covid-19 pandemic.

Woodbois said revenues were up 44% quarter-on-quarter to $4.6m in the first quarter, with total sawn timber production increasing 83% quarter-on-quarter to 3,700 cubic metres and total veneer production improving 44% on the prior quarter to 822 cubic metres.

The AIM-listed group noted that supply chain disruptions had caused a short delay to the installation of its Primultini sawmill line, with completion now expected in May and increase its sawn timber production by 30%.

Woodbois also highlighted that it continued to see progress with the turnaround of its Mozambique business and noted the recent militant events in the North of the country had not impacted its operations and were not expected to have any effect on its performance in 2021.

Looking forward, despite the "continued proliferation" of Covid-19 and the "subsequently challenging global economic environment", Woodbois stated it expects to turn cashflow positive and deliver record revenues during 2021.

As of 1110 BST, Woodbois shares were down 1.71% at 5.75p.