2nd Jun 2016 07:01
LONDON (Alliance News) - Fox Marble Holdings PLC on Thursday said sales had been slower than originally envisaged in 2015, and saw its pretax loss widen, but said revenue should grow in 2016 as it has begun to establish its product in key marketplaces.
The marble quarrying and finishing company said revenue grew to EUR229,242 in 2015 from EUR149,924 a year earlier, although this was "significantly below" its expectations due to significant time investment forging strategic relationships and demonstrating its capacity to provide "the consistent quality and quantities of marble our customers require".
Ongoing costs incurred in developing the quarries meant the company's pretax loss widened to EUR3.0 million from EUR2.3 million.
Fox Marble, however, added that costs should decline once its Lipjan factory is complete, as its cutting and polishing operations will no longer be reliant upon the site in Carrara, Italy. Its quarries are in Macadeonia and Kosovo.
Fox Marble said it worked to access larger and more consistent blocks at its quarries, but saw a dip in extraction levels, extracting 10,700 tonnes of marble during 2015, down from the 14,188 tonnes it extracted a year earlier.
Fox Marble, however, noted that it expects to fulfil a number of key milestones in 2016, including commissioning its Lipjan factory, which is nearing completion, and increasing levels of production at its quarries. It also expects to win further orders.
"We anticipate that revenue will increase as more customers purchase our stone and already we are seeing the results of our efforts in establishing our product in key marketplaces throughout the world and the benefit or having our marble actually installed in developments," the company said in a statement.
"Success with our on-going marketing and strategic relationship building programme makes us confident of achieving sustainable income from a diverse, global range of customers for both our block and slab products," Fox Marble added.
Fox Marble said it does not anticipate paying a dividend until its operations become "significantly cash generative".
Its order book value was EUR3.9 million as at June 1.
"Whilst it is fair to recognise the development of sales as being slower than we originally envisaged, we are pleased to report an increase in the company's order book and a key strategic development in our long-term distribution agreement with Eboracum Marble Ltd. Progress at the factory site brings the company closer to self-sufficiency and to a key stage in its development, with completion entailing increased margins and direct sales opportunities across multiple distribution networks, including the Balkans locally," said Chief Executive Chris Gilbert.
By Hannah Boland; [email protected]; @Hannaheboland
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