Woodbois looks to resume production as it faces cash crisis
By Josh White
Date: Wednesday 05 Feb 2025
(Sharecast News) - Woodbois said in an update on Wednesday that it was facing financial strain following last year's operational disruptions, which included a production halt and management changes.
The AIM-traded company said it was experiencing tight working capital and an elevated level of creditors, but added that it expected cash generation to improve once production fully resumed, allowing it to normalise creditor payments within weeks.
It acknowledged that some creditors had grown impatient, a situation worsened by limited communication in late 2024.
A court in Gabon recently ruled in favor of BGFI Bank, permitting the institution to begin recovery proceedings for €0.79m owed by Woodbois.
The company maintained that resuming production was the best path forward for all stakeholders, including BGFI, employees in Gabon, and shareholders.
Woodbois said it had started shipping existing stock from the port in Libreville and was now moving additional inventory from its Mouila warehouse to the port.
The company added that it was in discussions with advisers regarding financing options to bridge its short-term working capital needs, and would provide further updates in due course.
At 1052 GMT, shares in Woodbois were down 10.55% at 0.07p.
Reporting by Josh White for Sharecast.com.
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