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Fox Marble tipped to deliver polished performance this year

Published: 07:48 13 Apr 2015 EDT

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Shares in Fox Marble (LON:FOX) flew higher after broker Beaufort Securities tipped the firm to deliver a polished performance this year.

Fox is focused on marble quarrying and finishing in Kosovo and the Balkans region and last week bagged its second order from Berkeley Homes for €570,000 of cut and polished marble slabs.

Overall, the company’s order book now stands in excess of €2.8mln of which €2mln is expected to be realised during 2015.

Meanwhile, its new factory in Lipljan, Kosavo, is nearly complete.

Today, Beaufort Securities said with the factory finally finished the firm can commence a quite dramatic ramp-up of production in tandem with rising buyers' confidence.

“Sales targets envisaged by Beaufort research of the past year now look set to be met or exceeded,” said the broker.

“Labour and transportation costs are low, yet global demand continues to increase while pricing remains firm and rising."

Against this, Beaufort reckons the firm’s operations look set to become exceptionally cash generative very quickly, with management committed to distribute any the surplus in the form of dividends.

“The first result of this could even be seen this financial year,” added Beaufort’s analysts.

“When it has demonstrated its ability to routinely turn production into significant profit, the market should start to recognise this fact and power a re-rating of the shares.”

Shares climbed 10% in early deals, 2p higher at 20p.

 

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