13th Dec 2016 09:09
LONDON (Alliance News) - Fox Marble Holdings PLC on Tuesday said the conversion of orders into delivered sales has taken "longer than anticipated" and will mean its 2016 sales will miss expectations.
The AIM-listed company that quarries and finishes marble in Kosovo and the Balkans said it expects revenue from sales of its quarried block marble and finished marble to be in the region of EUR700,000 for 2016, ahead of the EUR200,000 generated a prior year.
Of the sales expected in 2016, EUR600,000 will be derived from converted order book sales, Fox Marble said.
Its order book for 2017 currently stands at EUR2.9 million, which the group said reflects the continued global appetite for high quality marble.
However, Fox Marble said the order book also reflects longer lead times in covering orders to realised sales in 2016, and those sales are now expected to be completed in 2017. Its sales for 2016, though, will be below expectations.
Fox Marble noted there are a number of potential off-take, distribution and sales agreements which are currently under discussion but are not included in its order book. These may "positively impact" its revenue for 2017, the group said, though it added there can be no assurance as to the extent and timing that orders will convert to revenue.
Fox Marble said it expects its Bianco Illirico white marble and Illirico Selene grey marble to become its largest products in terms of volumes of sales in 2017.
The group said it is due to begin limited processing in its first wholly-owned and operated processing factory in Kosovo by the end of December, which should allow Fox Marble to accelerate sales conversion rates and to maintain and increase margins in 2017.
Shares in Fox Marble were down 13% at 7.09 pence on Tuesday morning.
By Hannah Boland; [email protected]; @Hannaheboland
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