LONDON (Alliance News) - Fox Marble Holdings PLC Monday said its sales figures were "below expectations" for the first-half, but expects improvements in production and sales now that its quarries are fully operational.
Fox Marble's shares were down 13% to 20.50 pence per share Monday morning following the release of its half-year results.
The marble quarrying company focused on Kosovo and Southeast Europe reported revenue of EUR34,000 in the six months ended June 30, after introductory sales were made to customers in the US, Europe and the UK, but revenue development is still in its initial stages, it said. The company generated no revenue in the first half of 2013.
Fox Marble's pretax loss widened slightly to EUR1.2 million in the six months ended June 30, compared to EUR1.1 million in the first-half of 2013.
"Despite working hard to establish Fox Marble as a seller of premium quality marble, our sales figures for the first half of 2014 have been below our initial expectations," said Chairman Andrew Allner. Unseasonal and bad weather that has persisted in Kosovo since April has hindered progress, it added.
Fox Marble is confident that development of its quarries is now at a stage that will support significant progress in sales revenues in the second half of 2014 and 2015, it said.
"Now that the quarries are fully operational, this will give customers confidence that our products can be reliably supplied in sufficient volume which should underpin new orders from customers that were reluctant to order from a quarry in the development phase. Furthermore, we are busy extending our marketing sales and distribution arrangements around the world which should also deliver new sales in the next 12 months," said Chief Executive Chris Gilbert.
"The company is expecting to be able to announce further orders in the next few months. In the meantime the company has sufficient working capital to continue to develop operations," added Allner. The company said it had EUR2.5 million in cash and equivalents at June 30.
Fox Marble has purchased a double-skinned steel factory for the cutting and processing of blocks which is currently being erected on its 10-hectare site in Lipjan, China, and it said it expects it to begin processing marble for sale from the factory in the first half of 2015.
"With the exception of sales, which have taken longer than expected to ramp up, we believe your company has made good progress in the period," Allner said, addressing shareholders.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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