Convertible loan



Bit alarmed to read this “Convertible loan note held by Amati Global Investors Limited that was entered into at the Company’s IPO in August 2012 at the initial annual interest rate of 8%, is incurring annual interest at a rate of 25% since 1 September 2015, and maturing in August 2017. The Company is in negotiation to replace this loan note with a long-term loan with a significantly reduced interest rate.”

Since Amati hs a large share holding it is to be hoped that it will be in their commercial interest to negotiate a rate close to market norms.


It makes sense to me as Fox Marble can now offer much more visibility with regards to potential earnings, so supposedly less risk. Whether Amati choose to re-negotiate might give us some idea of their confidence in the business in the short term.

The one thing that I find really annoying is Chris Gilberts seemingly endless ability to over promise and under deliver. In the half yearly report published 10th September he expected 1.4m euros of the order book to be converted to invoiced sales. To deliver just 230,000 euros of this 1.4m is just not good enough. He shouldn’t make that statement unless he is sure he can deliver. In the longer term it might not be that important but the CEO’s credibility is. Reading between the lines I think the bottom line is that until they can process this marble in house they can’t turn a profit on the marble they extract.