LONDON (Alliance News) - Natural resources investment company Leed Resources PLC said investee company High Mannor has taken steps to limit the impact modification work will have on the moulds and bases it has ordered from a Chinese supplier, which were the wrong size when delivered.
High Mannor is a Western Australia-based limestone retaining walls producer. Leed said the moulds and bases from the Chinese manufacturer offered a big cost saving and shorter delivery schedule than those offered by domestic manufacturers in Australia. But these moulds were found, upon delivery, to be outside accepted sizes and needed modification, which was handled by a Perth-based manufacturer.
Modification work on the first mould was completed on September 1 and production trialling has begun with the existing prototype. The company has put a plan in place which should mitigate the delay to the start of panel deliveries, Leed said, and expectations remain that it will continue to start delivering panels in October.
High Mannor's order book and sales volumes were robust for its traditional limestone blocks and there are multiple opportunities for the group to start selling its wall panels, Leed said.
"Whilst it is frustrating that the modification work on the moulds has delayed the introduction of panels into the market, it is of utmost importance that HM can produce significant volumes of panels to meet customer specifications from the outset. The market is eagerly awaiting the panels and the strong customer interest has confirmed our confidence in our investment in HM and its potential value for our shareholders," said Leed Chairman Ian Gibbs.
Shares in Leed were up 16% to 0.058 pence on Monday, one of the best performers in the AIM All-Share.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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