Unless it involves Antony Jenkins, investors don't normally respond well to the word 'fire', as Fox Marble (FOX) found to its cost this week. Shares in the natural stone extraction group fell by as much as 26 per cent on news that a fire at equipment supplier Prometec had destroyed two major pieces of machinery destined for Fox's factory in Macedonia.
Although the incident occurred three weeks ago, Fox was waiting for Prometec's insurers to sign off on the claim, which they have now done. As a result, the Aim-traded company expects minimal losses, although 2015 revenue will be impacted by delays to marble processing. While replacements are sought, Fox has sourced alternative processors at "specially reduced rates" which should not impact margins.
This wasn't the only bad news. Half-year revenues are now expected to be less than previously thought at €110k (£77k) owing to delays at the Sivec and Malesheva quarries. "We could have done better on the sales front than we did," acknowledged chief executive Chris Gilbert, who has responded by bulking up his sales team.
Prior to this update, Allenby Capital was forecasting adjusted pre-tax profits of €1.6m and EPS of 0.8p for the year to December 2015.
