Babylon Pump & Power today ran a Zoom investor webinar, the...

Babylon Pump & Power today ran a Zoom investor webinar, the first since appointment of James (‘call me Jamie’ Cullen as chairman.

Jamie Cullen is a busy man. He’s chief executive of QIC-owned Pacific Energy, a major operator in the WA mining space. And he’s chairman of Perth-based Chesapeake Capital. Plus, he’s underwriting part of BPP’s current $6.4m share issue.

Chesapeake capital is BPP’s second ranking shareholder after Geoff Lord, founder and chief of Melbourne-based Belgravia Group.

Together, the money-men Lord and Cullen are building their combined equity towards 25%.

And they’re encouraging Perth clients of Cannacord Genuity (Australia) and Argonaut Group to buy their story.

That story includes plans to hoist BPP sales from $30m to >$100m within five years.

If they can hit the turnover target and build margins, there could be a sequel – a lift in BPP’s market capitalization. This currently sits at $6.6m.

Today’s webinar featured Jamie Cullen and BPP founder and managing director, Michael Shelby.

Here are my 10 key takeaways:

Babylon will aim to:

1. Achieve “critical mass” and “critical scale”

2. Gain rental fleet margins of 60%-70% with “stable overheads”

3. Focus on water management

4. Deliver ‘pure water’ to the hydrogen industry

5. Expand its sales team

6. Build fleet numbers to a level whereby it can “repair its own assets’

7. Acquire operators in the water management and rental spaces

8. Expand into environmental industrial services

9. Align board/management remuneration to the BPP share price

10. Emulate the success of REL/Resource Equipment Ltd which Cullen interests bought for under $20m and sold five years later for $125m

Chairman Jamie Cullen noted today that had chosen to forgo board fees in favor of accepting performance shares.

His message: “If the share price doesn’t perform, I don’t get paid.”

Overall, I think Jamie Cullen and Michael Shelby deserve credit for today’s initiative.

Let’s see if the quarterly report due next month affirms their grounds for optimism.