Fox Marble Holdings PLC - focused on marble quarrying and finishing in Kosovo and the Balkans region - Reports sales halved to EUR700,000 in 2020 from EUR1.4 million in 2019. Sales of processed marble triples to EUR600,000 from EUR200,000 the prior year thanks to "the success of winning large contracts to the Kosovo market". However, block marble sales drop to EUR100,000 from EUR1.2 million as a consequence of Covid-19 restrictions.
Annual production slumps to 6,060 tonnes from 14,515 tonnes the year before, a result of planned stoppages resulting from Covid-19. This was to keep operational cash flow neutral given the reduced demand for block marble caused by Covid-19. More positively, processing volumes four times higher though the factory due to increased material demand, along with process improvements.
Fox Marble further noted it has engaged Dentons Europe CS LLP to act on its behalf in an approximately EUR195 million claim against the Republic of Kosovo. Dentons has agreed a fee arrangement letting Fox Marble take the arbitration through to its conclusion. To complement this, it has secured firm commitments of GBP500,000 of litigation funding from private investors. It also conducted a GBP1.1 million placing which, in combination with the litigation fund and fee arrangement with Denton, are expected to cover all arbitration costs and has let Fox Marble begin preparations for formal proceedings against the Republic of Kosovo.
Fox Marble charges that the Kosovo government failed to protect Fox's rights over the Malesheve quarry, breaching its responsibilities toward foreign investors.
Fox Marble also issues 5.0 million shares to five undisclosed individuals in lieu of cash payments, reflecting "contributions made to the company by these individuals".
Chief Executive Chris Gilbert: "2020 was a year dominated by the impact of Covid-19, both on the market in which Fox Marble operates and directly on Fox Marble's operations. Despite a turbulent year, the company has made significant progress in several areas. Sales of processed marble have increased significantly, driven by the large contracts signed in 2020 within Kosovo, supported by targeted capital expenditure and a focus on process improvements. Funding has been secured for our arbitration case, and we can now expect to see progress on this matter. While the block marble market was very disappointing in 2020, we are starting to see some green shoots of recovery and are confident that 2021 will see a gradual return to normal sales volumes."
Current stock price: 2.15 pence
Year-to-date change: down 14%
By Anna Farley; annafarley@alliancenews.com
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