Woodbois (WBI) , the African focused forestry and timber trading company, delivered a record quarter, with revenues of $4.5m and 114 containers of timber and veneer shipped.
Previously trading under the name Obtala, Woodbois issued its first report under its new name, after having bought out minority interests, restructured and completed the sale of its agriculture business in Tanzania.
The revenue increase was driven by both trading activities as well as from sales of sawn timber and veneer production. Woodbois indicated “a high level of confidence” that the trading division will deliver further growth during 2019.
Shares in Woodbois were trading 3.57% higher at 7.25p a share following the update
Paul Dolan, CEO of Woodbois said “The pace of progress reported above clearly validates the decision to shed the agriculture business in order to concentrate our experience, energy and strengthened balance sheet on competing profitably within our chosen industry.”
The company reported that total sales from the Dubai Woodshow in March generated over $2 million in sales, a 100% increase from the 2018 trade show. It expects revenues from these sales to flow through in the second and third quarters.
Mr. Dolan said that while he did no anticipate immediate institutional investment, the rapid growth and sustainability credentials “put the company on the radar”, after 1798 Volantis Team, a team within Lombard Odier Asset Management invested £5 million in new ordinary shares.
As of April 1 2019, Volantis had 25% of issued shares. It also provided a $5 million loan for trade finance.
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