Astute operational strategy moves Alexium towards profitability

By Trevor Hoey. Published at Jul 30, 2019, in Technology

Having delivered outstanding results on a number of fronts in the June quarter, Alexium International Group Ltd (ASX:AJX) released a promising quarterly result which provided a comprehensive insight into the company’s operational performance, progress with new products and the group’s improved financial position, while also pointing to a step change in income from its sales pipeline.

During the quarter, Alexium delivered several key achievements that clearly demonstrated the progress being made on the group’s growth strategy which was framed by the new leadership team.

The fourth quarter cash inflows of US$2.1 million, up 78% on the previous quarter, are a clear indicator of this progress.

Underpinning the strong quarterly financial performance has been management’s focus on operational execution.

Alexiflam® and Alexicool® excel

Several milestones were achieved in the June quarter, including finalisation of an agreement with Pegasus Home Furnishings to supply Alexicool® technology for bedding products which was signed in July.

This agreement is the culmination of substantial product development and commercialisation with Pegasus and follows from the previously formalised memorandum of understanding (MoU).

With regard to agreements in place for commercial products, Chief Executive Bob Brookins said, “We also progressed our Development Agreement with Pine Belt for a flame retardant NyCo product for military use, and the MOU we signed with ICL to negotiate a license agreement for Alexiflam® NF positions us for future growth in global markets.

‘’To support the commercialisation efforts of Alexiflam® NF, we were delighted to have received EPA approval to manufacture and sell Alexiflam® NF into the key US market.

“Alongside this work, we have been diligently increasing market penetration of our Alexicool® product line that will see our customers launch a number of new bedding products based on Alexicool® products.

‘’This next wave of consumer products with Alexicool® technology is exciting to see and is expected to be a key area of revenue growth in the near term.

New analytical tools are key to success

Driving this growth are the analytical tools which have been an essential part of the commercialisation of the company’s Alexicool® products.

In the June quarter, the technical team developed a new analytical tool for demonstrating the value proposition of Alexicool® products and their applications, allowing Alexium to take multiple Alexicool®-based products, such as textile and foam components used in the mattress, and actually quantify how these all work together as a system.

In the June quarter, Alexium’s technical team increased its capabilities with the development of the Integrated Thermal Sacrum (ITS) method.

As a specific example, the ITS method shows how the textile and foam layers of a mattress work in combination to provide a cooling effect for the consumer.

This significantly expands the company’s capabilities over previous methods that analysed the cooling capacity of a single component in isolation.

This new technique will drive the next phase of Alexicool® product development.

From a financial perspective, this sees Alexium remaining on track to achieve positive monthly EBITDA by the fourth quarter of the 2019 calendar year and generating sustained profitable growth in the years ahead.

Sequentially, this has been a transformational year for the business as it delivers on all the key milestones the new leadership team has set out.

With development agreements in place with the largest product manufacturers in the group’s technology segments and additional distribution and sales channels opening in new markets, management is excited by the opportunities it sees for Alexium, its shareholders, partners, and customers.

Alexium’s performance has certainly generated excitement among investors with the company’s share price increasing 60% over the last six weeks as it closed in on its 12 month high of 20 cents.

Where to invest $1,000 right now

When the experts at Next Investors have a stock pick, it may pay to listen.

The Next Investors have been investing in ASX small cap stocks for years, with their best small cap picks yielding returns of 1,200%, 1,120%, 900% and 678%.

They have just revealed their hand-picked, FY2021 stock portfolio of high conviction long-term investments.

Click the link below to see what they are currently investing in.


S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why is Australia’s leading small cap publication

Founded seven years ago, is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise. provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more. is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!