Commencement of new revenue stream

RNS Number : 7319V

Fox Marble Holdings PLC

05 December 2019

 

05 December 2019

Fox Marble Holdings plc

("Fox Marble" or the "Company")

Commencement of new revenue stream

Fox Marble, the AIM listed company focused on marble quarrying and finishing in Kosovo and the Balkans region is pleased to announce that it is has signed its first contract for the processing of third party blocks, which represents an additional revenue stream for the Company.

Fox Marble now has three principal sources of revenue from three separate activities, those of block sales from its Prilep quarry in North Macedonia; sale of processed material from blocks of its own material quarried in Kosovo and Macedonia and block processing for third parties.

Under this new third-party agreement, Fox Marble will process stone on behalf of Inter Stone LLC at the Company's factory at Lipjan in Kosovo.  The contract is for twelve months and it is expected that Fox Marble will continue to process blocks of material each month.  The blocks due to be processed within the first monthly batch of material have been delivered to the factory site and production has begun. The first order under this contract, expected to be fulfilled in December 2019, will generate around €100k in revenues for the Company.  The level of production will be up to a maximum of 1,000 tons per month, depending on the capacity that Fox Marble requires for its production of its own material.  

This arrangement will allow Fox Marble to expand capacity at the factory, driving performance improvements, whilst maximising operating efficiencies. 

This optimisation performance and efficiency comes in part from the adoption of a new flexible multi-shift system and is part of an overall factory improvement programme achieved since the recent appointments of Francisco Espinosa (COO and Head of Sales) and Secundino Costas da Villa (Technical Factory Manager),who bring with them a wealth of natural stone experience.

Working capital continues to be carefully managed as we implement our plans for growth.

Chris Gilbert, CEO, commented "This new revenue stream will allow Fox Marble to utilise more of its factory capacity and increase operating efficiency, whilst still processing its own marble for sale globally as well as in the wider Balkan market. We look forward to our ongoing partnership with Inter Stone LLC. I look forward to updating the market in the New Year on our strategy and future growth plans."

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

For more information on Fox Marble please visit www.foxmarble.net or contact:

Fox Marble Holdings plc
Chris Gilbert, Chief Executive Officer	Tel: [phone]
Fiona Hadfield, Finance Director	Tel: [phone]
Brandon Hill Capital (Joint Broker)
Oliver Stansfield Optiva Securities (Joint Broker) Christian Dennis / Jeremy King	Tel: [phone] Tel: [phone]
Cairn Financial Advisers LLP (Nominated Adviser)
Liam Murray / Sandy Jamieson / Ludovico Lazzaretti	Tel: [phone]

Notes to Editors:

Fox Marble (AIM:FOX), is a marble production, processing and distribution company in Kosovo and the Balkans region.  

Its marble products include Alexandrian White, Alexandrian Blue, produced from the Company's Prilep quarry in Macedonia, and Breccia Paridisea and Rosso Cait and Grigio Argento, produced from its quarries in Kosovo, are gaining traction globally both to international wholesale companies as well as being supplied directly into luxury residential properties.

In the UK these include among others St George's Homes and Capital and Counties Plc's Lillie Square development. In Sydney, Australia Rosso Cait, Alexandrian White and Breccia Paradisea marble have been used in what is expected to be Australia's most expensive residential property. These sales serve to demonstrate the desirability of Fox Marble's premium marble products as the stone of choice in some of the most prestigious and expensive residential developments around the world. 

Marble demand continues to grow with stable pricing and Fox Marble is capitalising on this growth internationally.

 

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