I would be surprised if this change were not part of a wire brush treatment now being applied by the new Board to the Company’s management history, and likely undertaken at the behest of institutional holders.
Prior to his CEO appointment DVH held the position of President of the Company throughout much of the NC-driven ‘period of enthusiasm’. That role isn’t easily understood in the context of the Australian corporate structure, particularly if both CEO and Executive Chairman functions also exist, but the position was described by the Company as being “responsible for AJX’s operations, leadership management and direction of the business amongst all departments”. That would be something of a burden to carry forward for a Board seeking to re-establish investor confidence via a clean slate.
Coupled with this would be DVH’s lack of experience both in a CEO role and in practical leadership within the industry that is relevant to the Company. There was some evidence of inexperience in issues of communication to investors, and the Company still does not have someone with leadership experience in the specialty chemicals industry at either board or management level. The comprehensive Petra Capital report of May 2017 saw Management’s lack of experience in running a public company as a key weakness, and I expect institutional holders would be agreement.
Whilst Brookins is obviously a highly competent innovative chemist, and no doubt a quick learner, he also is still carrying L-plates when it comes to commercialisation knowledge, relevant leadership experience and contacts within the industry in which the Company operates. I should think that it would be more beneficial for the Company that he not be distracted for too long from the innovative role that he has so aptly performed.
As an aside, I notice that the announcement did not refer to any plans for recruitment of a new CEO, although I assume they exist and would target specialty chemicals experience. That DVH’s resignation applies to his Board position also is worth noting.
AJX Price at posting:
13.5¢ Sentiment: Buy Disclosure: Held
