Fox Marble Share Discussion Threads

[wolstencroft] 19/8/2016 18:39

Orders are generally not entered into accounts and can sometimes be changed subject to the conditions made and agreed at the time of order. The document is a purchase order. Dodgy companies sometimes claim orders have been received when really there is a letter of intent / term sheet / heads of agreement, IMHO; all these are non-binding.

Sales generally can't be changed unless there is a contract violation. Sales are entered into accounts as soon as the sales invoice is raised. The legal document is a sales invoice.

Over time the conversion ratio between the two should be close to 100%, else there is something wrong with the product, the ability to deliver it, the sales team, or the quality of the buyers.

My own guess is that the Eboracum order is something like "We order subject to our customers wanting it EUR Y million worth of marble over the next Z years", i.e. more a LOI or HoA or term sheet. I'll ask them if I ever see them at a presentation.

In my business the sales director would not generally allow a salesman to accept an order if the company had 1 share 1 director a broken website that implies they have a shop with opening times that is in fact an accountants and an invalid email address. If they did they would almost certainly have done loads of due diligence to ensure that the order got translated into sales, by requesting a credit credit and asking to look at the balance sheet, otherwise they would be fired by the CEO for misrepresentation. Given that the Eboracum order has appeared in an RNS one must assume that they have done this due diligence!!!

[andy] 19/8/2016 18:25

eekorehc19 Aug'16 - 16:32 - 1205 of 1207 0 0
A order is a request to buy, it becomes a sale when it leaves the factory

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OK, then why do they mention "converting orders into sales"?

Surely one becomes the other automatically?


"The Board however confirms it is beginning to see progress not only in an increasing the order book but conversion of the order book into sales and anticipates fulfilling the Company's order book for the 2016 financial year."

[wolstencroft] 19/8/2016 18:13

I've met Chris a few times but I have to say this deal with Eboracum representing circa half their order book looks very strange.

[philjeans] 19/8/2016 17:56

Looks like a scam to me.

Keep well away.

[eekorehc] 19/8/2016 16:32

A order is a request to buy, it becomes a sale when it leaves the factory. Just like ordering a scone from a baker's, when it's out of the shop it becomes a scon(e)

[andy] 19/8/2016 16:03

apfindley,

To expand on the analogy you use, I ORDER from Amazon, and have to pay at the same time, yet the goods arrive later........

[andy] 19/8/2016 16:01

apfindley,

Eboracum paid in advance for some of their order!

FOX are using order numbers in their RNS as an indication of "success", whereas in fact they mention "converting orders into sales".

So if they don't convert that order into a sale, what is the use of knowing order numbers? It's useless as a guide for how the company is progressing!

Surely the relevant number is the amount of SALES, rather than orders, that may or not become a sale at a future date?

[apfindley] 19/8/2016 15:45

Andy Would you go into B&Q and order something, and pay for it, then come back 6 Months later to collect.?Youre reading too much into nothing.I very much doubt these guys are paying upfront for their marble and collecting 6 months later.More than likely they will pay sometime AFTER they've taken it.

[andy] 19/8/2016 15:36

smarm,

Good to see you are back again, I hope things are well with you. If you ever need any help just email me, it will be a pleasure.

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Nobody has caught on to what I was referring to, which is the RNS mentions orders being converted into sales!

So an order isn't a sale then? Am I the only one who thinks that's a bit strange?

[wolstencroft] 19/8/2016 12:39

Oh I'm so sorry to hear that. I hope you are bearing up. My best wishes.

BTW You were skeptical here some time ago and clearly right to be; my losses were about 20% I think back in the 22p to 18p days.

[smarm] 19/8/2016 12:24

Hi Wols, not at all good thanks. Had a brain tumour to deal with!

S

[wolstencroft] 19/8/2016 12:13

...And a dud email whatever the spelling

Delivery to the following recipient failed permanently:

[e-mail]

Technical details of permanent failure:
Google tried to deliver your message, but it was rejected by the server for the recipient domain eboracum-marble.co.uk by mail.eboracum-marble.co.uk. [142.4.215.196].

Delivery to the following recipient failed permanently:

[e-mail]

Technical details of permanent failure:
DNS Error: 35619604 DNS type 'mx' lookup of eboracum-mable.co.uk responded with code NXDOMAIN Domain name not found: eboracum-mable.co.uk

[wolstencroft] 19/8/2016 11:57

Hi smarm, how are you?

[smarm] 19/8/2016 11:43

What shocked you Andy?

S

[andy] 19/8/2016 11:22

gnnmartin,

I'm frankly amazed that nobody has commented on what shocked me about this RNS.

I'll post it later, I did think someone else would spot it.

[andy] 19/8/2016 11:06

Wolstencroft,

Yes Eboracum looks a strange vehicle, but lucky it came along when it did because orders were thin on the ground at the time! :-)

[wolstencroft] 19/8/2016 09:56

I can't figure Ordicium out: 8.7m of intangible assets and 8.3m of liabilities. No tangible assets. Not even anything in the bank.

[gnnmartin] 19/8/2016 09:52

I agree Andy, though I don't know what the 'real surprise' is. Perhaps you mean the loss caused by the fall in the pound, since they report orders in euros, but I guess it was likely that the sales to the UK would be priced in sterling.

No new news other than the .5m euro deterioration, and the fact that the resin line is now 'on route'.

I shall continue to hold, but without all that much hope. If it does manage to come good, then it will be worth several times the current capitalisation. But failure looks sadly more likely than success.

[wolstencroft] 19/8/2016 09:42

Eboracum looks very strange



Have a look at his other current and past directorships -

CORNERSTONE LEISURE LIMITED Company Struck off
CORNER OAK INVESTMENTS LTD No filings he resigned in Feb
S.K.I LEISURE LIMITED Company Struck off
EBORACUM MARBLE LTD Incorporated in October 2015. 1 shareholder.
BOSWELLS (LONDON) LTD Dormant
ORDICIUM (UK) LIMITED Became a director in July. No idea what this company does.

At Cornerstone Leisure his job was "Bar Manager"

Not invested; was in the past; had another look but I'm staying well away.

[andy] 19/8/2016 08:43

Well I'm surprised anyone sees that RNS as positive personally.

There's a real surprise contained in there, I thought I had read it wrong to begin with, but it's repeated, and I'm surprised nobody here has mentioned it!

[paleje] 19/8/2016 07:39

"further partnership agreements are under negotiation in the Middle East, India, the Balkans and North America, as sales channels in these areas are being developed."

I would have liked to hear more tangible progress on sales channels where fx will benefit us but they seem to be more or less on track with the factory, just need more work to go through it:)

[czar] 19/8/2016 07:30

The inflection point will come when they start cutting, polishing and selling finished slabs, this creates revenue 10x that of blocks and very good margins. Hopefully faith and patience will be rewarded soon.

[apfindley] 19/8/2016 07:20

Encouraging update.But still very poor levels of revenue compared to the market cap.Going back 3-4 years, I would have anticipated revenues today to be in the tens of millions, not a few hundred K's.Bit disappointing as I've been watching this and was expecting to reinvest once revenues increased.Business however is fairly stable and seems to have found a Base level