Chris Gilbert, CEO, commented: “I’m pleased to report that in 2017 we achieved a significant operational breakthrough with the successful completion of our factory in Kosovo. Furthermore, this major achievement was coupled with the securing of a number of key international sales agreements throughout the year. Our marketing, sales and distribution efforts have produced multiple customers in multiple jurisdictions who are repeat ordering our material.
“Today Fox Marble is in a unique period of development as our quarries are reaching maturity and our factory is fully operational. As global demand for marble continues to grow, our focus remains on capitalising on this growth and strengthening our position in the market.
“We are establishing Fox Marble as a major international supplier of high quality marble blocks and processed marble products as we increase our capacity and enhance our product range. Demand for our materials is increasing and our recent fund raising has enabled us to strengthen our balance sheet, increase production capacity in the quarries and drive our sales to deliver sustained growth going forward.”
Fox Marble LON:FOX, the AIM listed company focused on marble quarrying and finishing in Kosovo and the Balkans region this morning announced its preliminary results for the year ended 31 December 2017.
Highlights of 2017 financial year
– Marble processing factory completed in September 2017, with over 14,000 m2 of material processed up to 31 December 2017. The factory is capable of producing high quality slabs cut to internationally recognised standards to within a 2mm tolerance with a high quality finish.
– Production of 8,811 tonnes of material at the Prilep and Maleshevë quarries (2016 – 4,286 tonnes, of which 2,687 tonnes at Prilep and Maleshevë).
– Revenue for the year of EUR1.2 million (2016 – EUR0.8 million) with further advances of EUR0.4 million received. 4,641 tonnes of material sold in 2017 (2016 – 1,243 tonnes), together with over 5,000 sqm of processed material (2016 – 6,118 sqm).
– Operating loss for the year of EUR2.9 million (2016 – EUR3.0 million). Loss for the year of EUR3.4 million (2016 2.7 million). The increase in overall loss is caused by an increase in finance costs in the year.
– New sales contract entered into with OM Enterprises (“OM”) in September 2017 to purchase a minimum of 5,000 tonnes of material over the next three years. OM has paid a $500,000 advance payment in respect of the first 2,500 tonnes of material.
– Three year sales agreement signed with Mr Shailesh Patil. Subject to achieving a minimum commitment of 3,000 tonnes per annum, and payment of a GBP0.5 million advance, the agreement grants exclusivity over the GCC (Gulf Cooperation Council) region. The minimum commitment under the Agreement equates to approximately EUR0.6 million to EUR0.8 million per annum..
– Recurring block orders to large wholesalers in India and Turkey, including Mahadev Marble Pvt, RK Marble Pvt, and Simsekler Dogaltas Madencilik A.S totaling EUR0.5 million.
Highlights year to date 2018
– Successful share placing completed in January 2018 raising GBP2.8 million through the issue of 26,283,331 ordinary shares at 10.5p. The Company simultaneously issued 7,457,140 shares to discharge GBP783,000 of the Company’s outstanding loans and other liabilities to certain Directors and to Brandon Hill Capital Limited.
– On 30 January 2018 the Company repaid the Series 1 Loan Note due to Amati Global Investors Limited in the amount of EUR1.1 million and repaid the short term borrowings due to Peers Hardy (UK) Limited in the amount of EUR0.6 million.
– Following the repayment of debt completed on the 31 January 2018, and through the issue of shares, the debt outstanding in the Company as at 30 April 2018 was reduced to EUR0.76 million in the form of unsecured convertible loan notes.
- Cash balance as at 30 April 2018 of EUR0.44 million.
– Capital investment made in the quarries to support increased production in 2018 of EUR0.5 million, together with the purchase, installation and commissioning of a state of the art CNC machine to allow bespoke cut to size polished slabs and tiles to be produced in the factory.