Shareholder site visit a success for Trajan
- Wed 31 January 2024
- 3 MIN READ
Trajan Group Holdings Limited (ASX:TRJ)
Its recent AGM investor day was a chance for the market to get close to this complex, emerging biotech.
Stephen Tomisich, CEO of Trajan Scientific and Medical
“We like to deal in facts rather than speculation and we have always met guidance. We’re a small cap but we behave like a much more mature business.”
Trajan Scientific and Medical (ASX:TRJ) CEO Stephen Tomisich has maintained an open-door policy for the investment community in the two years since the business listed on ASX. Trajan provides products and services essential to sample handling in the clinical, pharmaceutical, environmental and food sectors.
“I've tried to make myself extremely accessible because we're a small cap, but we're a complicated business. It takes a bit of effort to get your head around who we are and what we do,” he says.
Tomisich notes COVID presented challenges in the early days of the Melbourne-headquartered, global analytical science and device company’s listing. Consequently, Trajan’s communication strategy has evolved over time.
“The first few investor meetings were virtual. Then, we had a combo virtual and in-person AGM. This year, we divided the AGM into two sessions. One half was the obligatory AGM items, which we did virtually, along with a message from the chair,” he says.
“Then, we held an open day at our Ringwood facility for the broader investment community. We welcomed 55 guests including institutions, analysts and more than 25 retail investors, who were all still there at five o'clock. They got to see our Ringwood facility and mix with a range of directors and walk the shop floor.”
Tomisich says the aim is to be as transparent as possible with the market.
“We like to deal in facts rather than speculation and we have always met guidance. We’re a small cap but we behave like a much more mature business. Our announcements have largely been confined to half year and full year results, as well as our acquisitions, which have been material.”
Different paths to growth
Trajan is pursuing both organic and acquisitive growth, having made 12 acquisitions since forming and four since listing, all of which have been successful. Each acquisition was very different, although every one of them involved a thorough assessment of the target’s risk factors and cultural sensitivities.
“We start with the positives, bringing the two groups together, sometimes co-locating with the target’s business or bringing some of their products or technologies into our portfolio. Over time, based on cultural sensitivities, we do the back-office integration, merging financial reporting and ERP systems,” says Tomisich.
“That way, duplications become obvious to everyone and instead of resistance, you get buy in and the best outcome. That’s our general approach to M&A.”
Looking into the share register
Tomisich and his wife Angela own 51 per cent of the business, with a number of institutions and a small tail of retail investors making up the rest of the share register. A challenge is low trading volumes can cause volatility in the share price.
“We remain focused on running the business for the best outcome for our customers and the business itself.”
“We remain focused on running the business for the best outcome for our customers and the business itself. Over the long haul, all of that will sort itself out,” says Tomisich.
Rebecca Wilson, who leads investor relations for Trajan, notes the executive is in constant contact with the top 50 shareholders.
“We think if we continue to build a really strong business that is growing and hitting guidance, and standing out from a commercial perspective, the valuation will follow,” she says.
Strategic sustainability
ESG has always been at the heart of Trajan’s ethos and it’s an increasingly important priority for its customers and investors.
“I've attended ESG days organised by our larger North American customers as a key partner for them. They place great emphasis on what are we doing around ESG. Our fundamental purpose is about science that benefits people. So, everything we do is ESG aligned,” says Tomisich.
As a global business, Trajan’s management ensures that it is across new ESG reporting regulations in the US, Europe, and Asia.
Says Tomisich: “We're also looking at ESG from our customers’ perspective. They want to know about our net zero commitments and our suppliers want confidence in our sustainability practices. We take challenges like biodegradable packaging head on. I want us to think about ESG in a way that delivers true impact.”
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