Fox Marble Holdings PLC (LON:FOX) has sounded a positive note about its 2017 results, saying it expects a number of potential new offtake, distribution and sales agreements to boost revenue.
The marble quarries operator said it has completed shipments to India’s second largest marble export house, Mahadev Marmo, after signing and purchase agreement for about US$1.8mln per year of block marble in February. Fox Marble has also received a purchase order for its third shipment of 1,000 tonnes.
The group has signed a separate agreement with Turkish natural stone company, Simsekler Mermer, to supply a minimum of €0.4mlnmarble.
RK Marble Pvt Ltd, a major marble company, has sent a letter of intent to Fox Marble for 1,000 tonnes of block marble.
Fox Marble has started cutting blocks at the factory for the purpose of completing existing orders. The resin and polishing lines are being calibrated and are expected to be able to produce polished slabs next month.
However, Fox Marble has reduced its expected order book value for 2017 to €3.6mln to reflect potential project delays arising from one of its agents, Pisani, which entered administration last week.
Fox Marble said it has removed all consignment stock and stock for which payment had not yet been received from Pisani storage.
The group, which has net unprovided receivables due from Pisani PLC of €68,000, is assessing the situation and the impact that it may have on its order book projects but expects that its materials will continue to be installed in projects.
Fox Marble confident on outlook
Chief executive, Chris Gilbert, remains upbeat on the group's 2017 results.
“As we look ahead to the second half ot 2017 we remain confident that a number of potential new offtake, distribution and sales agreements currently under discussion with customers across the UK, Europe, US and Asia, which the company believes will positively impact Fox Marble's revenues in 2017.”
Gilbert said the company has entered into a number of sales agreements following the completion of its new processing factory in Kosovo, which has moved into production.
Fox Marble announces convertible loan note
Separately, the firm announced it has completed the issue of a convertible loan note for £440,000. The terms are the same as the first series loan note issued at the time of its initial public offering in 2012 with an interest of 8%. The note is due for conversion or repayment on 31 July 2019.
Fox Marble also has put in a place a draw down facility of up to £1mln . Its cash balance at 28 June 2017 was €0.97mln.