London-listed Fox Marble (AIM:FOX) has signed an inaugural contract for the processing of third party blocks, representing a new revenue stream for the group.
Under the third-party agreement, Fox will process stone on behalf of natural stone supplier, Inter Stone LLC, at the Company's factory at Lipjan in Kosovo as part of an on-going partnership.
Fox will continue to process blocks of material each month and the first blocks have already been delivered to the factory site where they have commenced production.
This first order under the twelve month contract is expected to be fulfilled this month and to generate around €100k in revenues for the Company.
"This new revenue stream will allow Fox Marble to utilise more of its factory capacity and increase operating efficiency, whilst still processing its own marble for sale globally as well as in the wider Balkan market,” said Chief Executive, Chris Gilbert.
Fox said that the adoption of a new multi-shift system as well as two recent expert appointments to the team had contributed to “an overall factory improvement programme.”
Currently, Fox has three principal sources of revenue coming from three separate activities including block sales, the sale of processed materials and block processing for third parties.
The company explained that monthly production levels will be up to a maximum of 1,000 tons depending on the capacity that Fox requires for the production of its own material.
Looking ahead, Gilbert expressed his positivity on behalf of the group regarding its partnership with Inter Stone LLC.
Inter Stone LLC was built as a strategic distribution point in Eastern Europe with the aim of becoming one of the largest biggest natural stone suppliers in the region.
“Working capital continues to be carefully managed as we implement our plans for growth.” the company added.
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