Danny's post is a little tone-deaf to the shareholders who enabled that 26x increase in revenue and who are suffering.
He mentions revenue growth but not growth in shares on issue... as a CEO of a listed company, his performance should be anchored to the share price, or at the very least revenue per share, not revenue alone.
I firmly disagree that it is too late for this company. In fact, they are now in the strongest position they have ever been in since listing, and I also firmly disagree that profits should have been the main focus in the early years.
Scaling a contract manufacturing business is extremely capital intensive and early shareholders have been the guinea pig of this. However, the business is now at scale with $80m run-rate revenue and is in a position to turn an NPAT profit, which I am expecting in FY23 and beyond.
With operating leverage now kicking in, NOW the focus of this company should turn to profitability and finally shareholders should be rewarded.
From here on in, there are no excuses. Going forward, with a new CEO, I want to see the share price as Jourdan Thompson's single most important measure of success. Additionally, all Directors/senior management should have at least 2x their annual base in shares, ideally 5x, to enable this alignment.
If not, the Board is not doing their job.
