Fox Marble - Re: FOX Stream Log - Beaufort's view from this morning:...

Beaufort's view from this morning: "It is true to say that 2015 was a disappointing year for Fox. A run of unfortunate, hindering events together with an order book that failed to match expectations. Left with a somewhat depleted balance sheet, management also subsequently took the rather surprisingly decision to raise new equity funding at less than half the share price achieved this time last year. It all means that CEO, Chris Gilbert, now has a lot to prove, but the signs are that he will now start to deliver. The order book is already looking healthier and a key strategic long-term distribution agreement with Eboracum Marble Limited has been put in place. Progress at the factory site will bring the Company closer to self-sufficiency with completion promising increased margins and direct sales opportunities across multiple distribution networks, including the Balkans locally. With major capital costs already mostly taken care of, the recently strengthened balance sheet is now focussed on developing a global supply network, with the ambition to satisfy demand in the Middle East, North America, India and Europe. Despite global economic uncertainty, demand for premium-quality marble continues to increase with prices remaining firm and rising. Given the size and quality of Fox's resource and operational facility, a comprehensive distribution network now appears to be the final missing piece in the Company's strategic jigsaw. Assuming management can successfully put such arrangements in place, there appears little to stand in the way of the Company delivering a quite dramatic improvement in visibility and depth of its order book in coming years. These earnings, in turn, should be capable of dropping rapidly to the bottom line, of which the management has already indicated its willingness to distribute in the form of dividends." taken from Research Tree