SP21 Apr 2023 22:33
In the most simplest terms. Woodbois has an over draft facility with Sydbank. Where a business has an overdraft facility with the bank, the bank has a right to remove the facility if it believes there is risk (based on cashflow forecast or management accounts).
Woodbois are saying we might be in our overdraft, but look how much money we are owed. Businesses like to use a debt facility if the interest rate is low.
It appears that Woodbois management does not agree with Sydbank's conclusion and believes that the company had been well placed to deliver a very positive performance for the remainder of the year.
So Basically, they are going back to the drawing board to address their internal cashflow forecast for the remainder of the year.
Conclusion, it would seem a risk for an investor in this very short term, once the above has been address it will be back to recovery.
If you ask me this share looks worth the ride. All shorts welcome to moan or insult about this post! Have a good weekend.