Granted the history of this company is sad. Not the future IMO and here is why I think so. Backward facing sentiment is affecting many readers that might otherwise be starting to sit up and take a fresh look. Is there hope? Share price based sentiment is obvious and dominant here and totally understood given the long slow grind. I bought back a tiny parcel many months ago based upon the obvious skill sets of BBlackburn. I am not sorry I did as it forced me to keep a splinter of attention on their progress. Progress is what I see as the operations, approach, culture and story keep improving. Pure business acumen, specific expertise and drive were what was needed to drive commercialization of cleaner chemical solutions and thermal markets.
The culture used to be "white coats", capital light, sales free, lies, along with milk the shareholders and that is the legacy that needs to be differentiated here from the current situation. That was not about the science ; rather original management (deluded or worse?). I stop short of offering further opinions about the alleged and or perceived abuses against shareholders of the company back then. This is the pain of the backward view.
Several iterations have since failed; starting with Dirk and then Bob (as CEO), Sue, Rosheen and so on, now all water under the bridge. The turn around has been painfully slow to get to this point; but what is "this point?" Note that I am not naive enough to think we are "there yet" either. However I do evaluate based on a clean sheet with the executive team replaced over time and the culture now dramatically changed. Clean sheet means a totally fresh analysis of AJX.
The world has also moved on which now sits as a benefit to AJX (US economy aside). Demand for new and safer flame resistant materials in; bedding, new regulation banning fiber glass in FR, regulatory developments supporting the removal of toxic chemicals from the environment (last one the biggest IMO) are a changing landscape we all saw initially and got excited about (10 years too bloody early). That day has arrived creating opportunity, and AJX have been through the meat grinder already, maturing in the process. Good. The register is dominated to the point that a take over would have to be in their benefit - but they want big profits after all this time, risk and input. So do I.
AJX is now sales based as a culture and that is not just words. Mature corporations even fail at this fundamental. "We all serve clients", is hardly a model used by food giants, telcos, or banks these days (captive clients hate them with a passion quite often). AJX has attracted Billy (thank the heavens, and now two more sales based specialists in the field that will assist him in his drive to turn this from a sinking ship, to one with viability then genuine growth potential. We are at this point now IMO. The fact AJX is not in administration is a miracle; but the persistence tells me there is genuine belief in the efficacy of the product range (which has grown).
Number one: they have taken responsibility for sales. Supply chain improvements, cost cutting, diversity, and culture lead the turn around. The company could have been turned into a tax loss; but the likes of Colinton Capital Partners (Simon) on board, keeping AJX going as an ongoing concern with zero debt is a massive injection of capital and confidence. Cost savings, reduced overheads, appropriate structure, focus and right fit of people for the jobs; all make AJX a far more attractive proposition. I believe this all creates an evolved AJX that just needs to capitalize on their new position in the market. The chances of that are higher than ever before.
Fresh eyes will relieve disgruntled long suffering shareholders of their shares in due course IMO. Shareholders have moved past victim status (me included at one stage - painfully learned mistakes), to "next quarter" BS diminishing, to fear, disappointment, anger, then apathy, disgust and finally disinterest. But we are not dead yet as joked about by the Python team. Far from it. I am not making light of financial pain here; just to be clear. I am trying to be fresh and supportive to fellow shareholders. AJX is close to genuine cash flow positivity, a genuine path forward in actual sales and contracts with diversified products, a qualified executive, a lack of past managerial conduct. Diversified products, diversified segments and markets, and an eye on maintaining clients and capitalizing on adjacent products. Bedding is even starting to turn around in the US which will assist them greatly as the old clients are still there. Bedding segment further enhanced = a plus. This is why I see hope and a new company and a turn around in progress.
I sincerely hope I am right for the sake of all shareholders / investors and the company. We all deserve a break.
DYOR and GLTAH CW
AJX Price at posting:
1.4¢ Sentiment: Buy Disclosure: Held
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