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Woodbois Ltd on Monday said key international clients had placed total orders valued at around $4.5 million. The Guernsey-based timber trader said its major clients in Libya, Iraq and South Korea have placed indicative purchase orders for over 9,000 cubic metres of sawn timber that cover the next 12 months. The bulk of the orders are expected to be shipped in the first half of next year, and the company said it expects further orders to be placed throughout the year. It also said it currently has open contracts for veneer, where clients will purchase the entire expected production for six months, at approximately $4.0 million for 6,600 cubic metres. The company also noted that it had made progress in changing client payment terms to ‘cash for documents’ rather than traditional letters and credit. It said this benefits cash flow with more efficient financial operations. It also said it will be able to maintain production during rainy season by buying 2,000 cubic metres of logs from third parties in Gabon to ensure supply chain reliability. The company also noted salary cost savings, which have fallen by 46% in Gabon and 45% outside Gabon year-on-year. Chief Executive Officer Guido Theuns said: ‘We are making progress in streamlining our operations and improving financial performance. By securing orders from known and reliable clients, enhancing payment terms, reducing costs, and taking proactive steps to maintain production during challenging conditions, we are building a stronger foundation for sustainable growth.’ Shares in Woodbois were up 2.4% at 0.21 pence in London on Monday afternoon. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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