TIDMFOX
RNS Number : 9873X
Fox Marble Holdings PLC
02 May 2023
02 May 2023
Fox Marble Holdings plc
("Fox Marble" or the "Company")
Update on share reorganisation and corporate presentation
publication
Fox Marble is pleased to advise that an updated corporate
presentation has been uploaded to the Company's website (
www.foxmarble.net ). The presentation provides more background on
the proposed enlarged Eco Buildings Group as outlined in the
Admission Document filed on 28 April 2023, a copy of which can also
be found on the Company's website.
Background to the Transaction
Following completion of the Reverse Takeover of Fox Marble by
Eco Buildings Group Limited (collectively the "Enlarged Group"),
the Enlarged Group will enter the modular housing market utilising
glass-fibre reinforced gypsum (GFRG) technology. The Enlarged Group
will be led by a new executive team with the requisite industry
experience to execute on its business plan to deploy its
high-quality and robust GFRG walling system for the modular housing
market.
The Enlarged Group's modular housing product has been shown to
be up to 50% cheaper, two-thirds lighter, and five times faster to
deploy than conventionally built homes. The construction method and
materials are also considerably more environmentally friendly as
they are non-toxic, inert, recyclable, utilise up to 74% less water
and up to 50% less cement, consequently leading to approximately
60% less energy consumption then conventional building methods.
The proposals contained in the resolutions to be put before the
General Meeting scheduled for the 26 May 2023 include a Share
Reorganisation whereby 51 existing ordinary shares will be
consolidated into 1 new share in the Enlarged Group. On
re-admission to AIM the share capital of the enlarged Group will
comprise 70,070,080 ordinary shares of 1p per ordinary share, with
a market capitalisation of approximately GBP38.5 million.
Financial
The Enlarged Group has already secured an order book of EUR114M
over the next three years from two developer and construction
companies in the Balkans. To satisfy this order book, in Q4 2022,
the Enlarged Group arranged for the construction of a 2,440m(2)
factory in Albania. In Q1 2023 equipment from its previous
operating base in Dubai was relocated to the new purpose-built
factory and will be re-connected in the weeks post the closing of
the Reverse Takeover. Delivery of first sales under these contracts
(as well as payment of 65% of the order value upon leaving the
factory) is therefore expected in late Q3 2023.
In addition to the order book above the Enlarged Group has
entered into a licencing arrangement with a UK Company who will pay
a 30% gross revenue royalty to the Enlarged Group for use of its
GFRG technology.
Further, the Group has also signed a letter of intent with a
Spanish property developer to provide approximately 2,000 housing
units and is in advanced negotiations with a number of other
parties in Latin America and Africa.
The Company initially intends to reinvest monies from product
sales into operations to expand production capacity in order to
meet this demand. This expansion will not only comprise of
establishing additional production lines in its factory, but also
the deployment of mobile production units directly into areas of
operation, thereby maximising returns.
The company is in detailed discussions with prospective funders
regarding the provision of additional debt facilities to the
Enlarged Group to supplement the funding made available to the
Company pursuant to the Placing. This funding will be used to
accelerate the growth in the production facilities.
The Enlarged Group will also benefit from Fox Marble's historic
operations, as it is expected that marble from Fox Marble's
quarries will be used in the developments under the Balkan
contracts, generating additional revenue beyond the EUR114M of
contracts. Also the Enlarged Group will continue to utilise Fox
Marble's processing facilities and will target additional sales
contracts to enable ongoing operations to further boost group
revenue.
Modular Housing and Demand
The current global housing crisis provides an ever-increasing
market for the Enlarged Group's products and the modular housing
market is already witnessing significant and rapid growth. Global
prefabricated housing is forecast to grow from $109bn to $162bn
(2027), although that still represents a small fraction of the
global building industry.
A number of new "start ups" have entered the modular housing
sector in recent years, albeit using very different technology to
manufacture their products:
-- Goldman Sachs invested GBP75m in Top Hat which is currently
building a 650,000 ft(2) new facility in Corby with the capacity of
delivering 4,000 homes per annum from 2023. In April 2023 Goldman
Sachs announced a further GBP70m of investment into this
project.
-- Ilke is backed by Sun Capital, TDR, Fortress Capital and
Homes England, is building a 250,000ft(2) facility in
Knaresborough. Ilke raised GBP100m in December 2022 to expand
output to 4,000 homes and has secured a further GBP60m in a third
round of funding.
The Directors of the Company are responsible for the release of
this announcement.
Ends
For more information on Fox Marble please visit
www.foxmarble.net or contact:
Fox Marble Holdings plc
Chris Gilbert, Chief Executive Officer
Tel: +44 (0)20 7380 0999
Fiona Hadfield, Finance Director
Tel: +44 (0)20 7380 0999
Tavira Financial Limited (Broker)
Oliver Stansfield/Jonathan Evans
+44 (0)203 192 1739
Cairn Financial Advisers (Nomad)
Liam Murray/Sandy Jamieson/Ludovico Lazzaretti
Tel: +44 (0)20 7213 0880
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END
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