(Alliance News) - Woodbois Ltd's share price fell on Thursday, after it lowered revenue and profit estimates for next year following ongoing supply chain issues, despite reporting annual profits have more than doubled, with margins and revenue also both up on 2020.
The London-based company's share price fell by 5.8% to 4.05 pence each on Thursday afternoon in London.
The Africa-focused hardwood products producer reported preliminary full-year gross profit of USD3.3 million for 2021, a leap from USD1.2 million in 2020.
Revenue saw healthy growth, up 15% to GBP17.5 million from GBP15.2 million in 2020. The year's margins also improved, coming in at roughly 20%, up from 8% the previous year.
Woodbois' fourth quarter saw revenue grow by 50% to USD4.8 million from USD3.2 million in 2020.
However, the strong progress in the final quarter was severely "constrained by sustained shipping and container difficulties and Covid-related disruption", the company said.
Woodbois predicts these disruptions will last into the first half of 2022. It has lowered estimates for its annual revenue and profit accordingly, and no longer expects to pay a dividend in 2022.
The company had a cash balance of USD900,000 as of December 31, 2021. After the shipping disruption put pressure on its working capital, the company has said it might need near-term cash bridging as it starts the coming year.
It has arranged two-year facilities of USD2 million each with its two largest shareholders, Rhino Ventures Ltd and Lombard Odier, both at an 8.5% interest rate.
Woodbois Executive Chair, Paul Dolan, commented "Whilst 2021 produced a respectable outturn, our growth in Q4 was impeded by lack of containers, with consequent inventory build. We have been working hard to secure enhanced and sustained export capacity for H1 2022 as this will be an important determinant of our growth rate and cash generation.
"Whilst this uncertainty exists we have felt it prudent to ensure we have sufficient liquidity for our forecast current needs. We are very grateful to our two largest shareholders for acknowledging the group's progress and recognising the effects of the uncertainties created by the unprecedented disruption to global sea freight in providing the standby facilities for the group. We are also looking at ways to fund accelerating our growth and this includes reviewing our interests in Mozambique."
By Elizabeth Winter; elizabethwinter@alliancenews.com
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Woodbois (WBI)