The Alexium International Group Ltd (ASX: AJX) share price fired up today after the advanced materials company announced a trading update for the fourth quarter of FY21.
At the close of trading, Alexium shares were swapping hands for 6.5 cents, up 4.8%, after surging 9% higher to 6.8 cents for much of the afternoon.
How did Alexium perform for Q4 FY21?
Investors are driving up the Alexium share price following a significantly strong performance from the company.
For the 3 months ending 30 June 2021, Alexium reported sales of US$2.2 million and cash receipts of US$1.6 million. While cash receipts remained in line with the prior reporting period, sales numbers experienced a substantial uptick. The sales result was attributed to new product lines that included the Total Mattress Cooling System (TMCS) and BioCool products.
The TMCS achieved its first sales and commercial launch during the quarter. The coupling of textile and foam products for a mattress design has seen growth in the United States bedding market. Alexium anticipates that further significant growth will follow into other TMCS designs. Full-scale production is projected to be reached sometime in the first half of FY22.
In addition, Alexium rebranded its Phonon technology to Eclipsys during the reporting period. The pending patent technology is seen as a breakthrough in thermal management for textile and foam-based consumer products.
The company said the product application is stated to continually pull heat away from the user, cooling them up to 200% more than competing products. This is particularly important as when a projectile is fired into the body armour, it causes significant thermal stress on the wearer.
Currently, the technology is being developed for the body armour market and is in late-stage evaluation, scheduled for H1 FY22.
Lastly, the company completed a successful production scale of its FR NyCo technology through a rolled goods application. A flame retardant nylon/cotton fabric is being sought after as Alexium works towards optimising the chemistry integration. It believes the garment slated for military use will be available for testing in the coming months.
Management commentary
Alexium CEO Bob Brookins commented:
"For the Alexium team, we are at the most exciting time that I have seen since I joined the company. While there are a number of factors contributing to this sense of excitement, I believe the greatest driver here is the commercial success we are having across our product platforms."
For the Alexium team, we are at the most exciting time that I have seen since I joined the company. While there are a number of factors contributing to this sense of excitement, I believe the greatest driver here is the commercial success we are having across our product platforms.
The Alexium share price has gained around 20% over the past 12 months, and is up 17% year-to-date.
