Fox Marble Share Discussion Threads

[wolstencroft] 24/11/2017 12:53

It was much easier to asses the margin on the blocks when they were announcing large "orders" - the orders never materialised so the margin was 0. On the other hand their costs were 0 too....apart from paying the brokers of course.

Now they are supplying it's a question I would ask of any CEO as an investor. It's not secret - the capitalist world is well aware of extraction costs, capital costs, operating costs, produce and consumer surpluses so as to not worry too much that companies make a profit. We ALL value ALL companies on margins eventually as that's the only thing that can translate into a profit.

The fact that the company is completely inconsistent in it's reporting of "order" "sales" and mentions sales seemingly by blocks / slabs, weight, polished area, containers and value makes me highly suspicious.

[haroldthegreat] 23/11/2017 23:08

Sales are vanity profit is sanity .

[exbroker] 23/11/2017 10:23

Pug
Interesting analyst, I know that the max weight of block is 24k kg on the roads in Kosovo and Albania. Given it says that they took stone from across the range it’s very difficult to work out what the margins are, depends on the quality within each type as well. Looks as if it’s some sort of test or sample shipment, its say that Granite Planet, a company specialising in the wholesale, fabrication and installation of marble and granite, based in Michigan, USA. Maybe this is the start of more slab sales, who knows but its good they want more containers.

[exbroker] 23/11/2017 09:39

Andy
As you say it’s a public company and you can look at the interim results to get an idea of the margin on the blocks as the factory was not open then. The good news is that they are now shipping slabs to the US which is a big market let’s hope they use the winter shutdown to prepare more for shipment next year.
It’s getting colder overnight in Kosovo, so the shutdown can’t be far away.

[pugugly] 23/11/2017 09:27

from

Typical Weights of Standard Shipping Containers
Length 10ft 20ft 40ft
Max Gross Weight 11,300kg 30,480kg* 30,400kg
24,910lbs 67,200lbs 67,200lbs
Tare Weight 1,300kg 2,170kg 3,750kg
2,870lbs 4,780lbs 8,270lbs
Payload (or Net Weight) 10,000kg 28,310kg 26,730kg
22,040lbs 62,420lbs 58,930lbs


So maximum for US order - if all goes to plan and containers are 20ft jobs and full is some 170 kilo tons Maximum - Revenue and margins ?

[andy] 23/11/2017 09:13

Exbroker,


Cut out the patronising stuff, OK?


I have always responded to you politely, please afford me the same courtesy.


How else can you assess the comapany if you don't know the profit, or in this case loss, that they are making?


Why aren't their orders "trade secrets" too then?


They are a public listed company and as such have to report to their shareholders. Sooner or later we will find out in the results, but in the meantime anyone considering an investment would be stabbing in the dark as they cannot accurately assess what they are investing in!


In my experience when companies won;t answer questions quoting "trade secrecy", it's not a good sign.

[exbroker] 23/11/2017 09:05

The Turks always take blocks as they have their own factory to cut and polish.
It looks like the order from the USA is going to be 6 containers of slabs.
Andy why would they announce the margin on the blocks that’s a trade secret, Marks and Spencer don’t tell you how much they make on a prawn sandwich so why would Fox disclose it?

[czar] 23/11/2017 08:33

I don't know what the monthly sales are but they announced one order for €500k and now more to Turkey and USA. Right now the majority of sales are blocks but this is changing and they must be close to profit now on a monthly basis imho.

[andy] 23/11/2017 08:24

czar,

"only" Euro 400K per month"


Out of interest, how much do you think they are making per month now?

And is that 400K on blocks or raw marble?

[czar] 23/11/2017 08:14

Well it looks like the sales channel is getting traction and importantly for cut marble too. They only need €400k sales per month to break even so they must be close to making a monthly profit. Almost all customers are long term and should increase purchases over coming months and years. Fox look to be at or even past the inflection point. If they IPO'd now it would be 5x this price at least, shame about the time it has taken to get here.

[andy] 23/11/2017 08:13

pug,


Sadly no mention of margins on the Euro 200,000 received from Turkey, it's not the revenue but the profit we need to assess. Blocks are lower margin than processed.


And no value attributed to the US order, which makes me think it's low, and again no idea of margin on whatever that value is.


Once again an RNS that leaves ore questions than answers.............

[pugugly] 23/11/2017 08:08

Anyone any thoughts on the rns re further sales of blocks to Turkey (low margin ?) and the small (imo) paid for delivery to the USA? Cannot at the moment remember the capacity of the factory but many multiples of the 230 square metres

[czar] 14/11/2017 14:58

Brownie points with the local government, very valuable, smart move.

[a0002577] 14/11/2017 07:43

Well Done Fox see and the RNS today

"Fox Marble was approached earlier this summer by His Excellency the British Ambassador to Kosovo, Mr Ruairí O'Connell with the plan to move the memorial to a more prominent location. Fox Marble was pleased to support the project by providing stone extracted from its quarries at Syriganë in northern Kosovo and Maleshevë in central Kosovo, cut and processed at its factory just outside Pristina, to build a new structure to display the memorial stone. The structure is believed to be the first major memorial in Kosovo's capital built from local stone comprising Illirico Bianco and Breccia Paradisea marble."

Sponsoring a war memorial is a) a very good thing to do and b) very good publicity.

[pugugly] 12/11/2017 19:07

HTG- Oh do stop being PC - EX is quite correct - Different countries different risk profiles - so quite correct to point it out - Also good business to get deposit/cash in advance if a new customer or possibe credit risk.

[haroldthegreat] 12/11/2017 18:54

exbroker I suggest you remove the above post it might cause upset some people. perhaps it should be "people " rather than being more specific .

[exbroker] 12/11/2017 16:28

htg
I am not sure if it’s the same for each customer, the Indian ones seem to be paying in advance, the more local ones it seems to be a deposit. If you can get an Indian to part with cash in advance you must have something he wants!

Andy
I think for the bigger orders the cash get reloaded as each bit of the order completes.

[haroldthegreat] 12/11/2017 13:46

Is it a deposit against future sales and so refundable or a payment in advance and not refundable unless fox fails to deliver on time and up to quality?

[discusser] 12/11/2017 13:30

The video records a tremendous achievement, and they are now at last able to show what they can do. Good luck to them.

[andy] 12/11/2017 12:41

exbroker,

For the whole order?

[exbroker] 12/11/2017 12:30

htg they get the money upfront now!

[haroldthegreat] 12/11/2017 05:52

How about significant payment received for sales made ?

[exbroker] 11/11/2017 16:59

Guys let me get this correct so I can get Chris to RNS something, do you want sales or orders and on what day do you want it announced?

[wolstencroft] 11/11/2017 08:39

Guys it's very unfair of you to accuse them of RNSing every sale

It's every ORDER they RNS....

[andy] 10/11/2017 14:34

You cynic! :-)