The market and especially a few HC posters really miss it... and...

The market and especially a few HC posters really miss it... and others are here and say it from a long time...

From the Petra report:

"One key area seemingly being missed by the market however is the significant operating leverage we start to see developing; the cost base for this business does not need to expand significantly in order to drive, or due to, revenue growth. As production is outsourced to toll manufacturers (AJX supply the raw materials), operating costs are confined primarily to running the head office and sales teams. These do not have to rise inline with revenue growth, in fact they should show only a modest rise over FY18/19F as employee costs moderate; therefore profitability should improve rapidly as the top line grows.

The outlook for Alexium remains bright, with Alexicool continuing to make significant market inroads. An exciting new product development in cotton flame retardants (Alexiflam NF) complement the existing FR suite, but has the potential to be a genuine game changer in the FR cotton market (US$150-200m size)."

Cheers, Tony