New Staff, page-16

morning all,

I take this as good news - and, looks like a good hire atm.


Again I see we have negative posting - which, I am reliable informed is good so that new investors just don't get the positive side of stories ie. Balance in posts.


I have to say that I would be extremely concerned for a new investor if they didn't realise that Microsoft cost more to run as a company in 2016 than when it was operating out of Bill's dad's garage.

It would seem that some of us think that it is news that growing companies have more staff costs and larger overheads.

Hmmm - well, I never. Here was me thinking that a 5 year old knew that one.

Then, here was me thinking that at age 10 - those kids realised that if you wanted to get bigger in something - well, you probably had to invest money and time to do it ---------- hence, why we pay them pocket money and why they learn things spending it.

By 17 years old - after they have made a big dent in your credit card and had to pay it back ------ they have learnt that the only really important thing is that you have the money before you spend it - or, you need to be able to cover the loan.

But, no ---------- we have to remind them much later that as you grow - your costs get bigger - well, some think we have to remind them.


Me - well, I knew that. But, I also know that any professional large organisation - must keep it's upper executive doors open and must keep an ear on the ground ------- but, being so large and complex - it also needs to have at least one professional on board to look after public relations - and investor relations.

Up until now Nick has done a sterling job of having an open door and keeping anyone at all informed who wished so - and, he did it at his invitation.

He also contacts several shareholders for a variety of reasons - and that has been of a two way benefit.

There comes a time, however, when I guess his email box is just too full - and he needs help to keep people up with it - and he needs professional help to make sure that any pressos or similar go out and are either written or at the very least checked by a full time professional.

I see this move as just more evidence that we are changing gear - the changes in character of this organisation are like looking at a kitchen -- we have gone from observing a kitchen bench with a loaf of bread, a block of cheese, a jug of coffee and the like - which would indicate a small meal, very simple - and, no more - just basic -

we now have benches full of multiple product - large pots bubbling and every oven full or heating ----- large fridges and coolers full of ice and drinks ------------------------- the observations are clear - we are planning a very large party.


Here is what we observe and, the list is probably not complete

New financial systems to handle the expected large jump in revenue/business
Numbers of sales staff on an explosive rise.
New storage facilities - giving a huge increase in inventory capacity
Larger inventory - much larger.
Larger laboratory area - to accommodate not only growth of staff - but, growth of trials/formulations/product research
Larger car park -- don't miss this one, even though it sounds trivial - Nick is aware of the Gore-Tex story.
Multiple trials coming to last stage - with a record of very low drop out.


Etc. etc. ----- all of this has one and one only indication --------- MASSIVE growth in business AND revenue.

Only to our 5 year olds will this be news that the costs will be greater - the rest of us know this.

There is only one thing of import here -------------- can we pay the bills?

The answer to that is yes -- AJX has been home and hosed on the viable race for a long time now.

For those who don't realise - a business can be profitable - but, not viable - and, in that case - you are dead.

Viable means that you can pay the milkman for the milk this week - if you can' t pay the bills - you have to switch the lights out.

AJX has had a large cash balance now for ages ------- not only that - it has the ability to raise cash - pretty much whichever way it chooses - if it needed to.
However - as the growth of the company happens - magically, the revenue growth happens - amazing, but true.

Even if we took the longest lead times of the AJX sales pipe - say 18 months - then, one can see that AJX is very comfortable for cash burn. That doesn't mean that AJX management and strategists will not strengthen the balance sheet for other reasons -------- strategy or additional growth requirements - good management always keeps that up it's sleeve.
Good management also doesn't lock it's company into large locked in supply contracts to drive the price of supply as low as possible - if it isn't 100% sure that it can use that product ------------ and, this is exactly what AJX has done - particularly in the polymer area.

All of these observations and moves by management indicate one single thing - a solid future - at least from where I sit.

have a great day all

Pinto