TRJ - Trajan Group Holdings

[System]

Trajan is a Melbourne headquartered global developer and manufacturer of analytical science instruments, devices and solutions.

Trajan designs and manufactures a portfolio of precision consumable products and devices and solutions. These products and solutions are ultimately used in the analysis of biological, food and environmental samples.

Trajan’s operations were initiated by the acquisition of two pathology consumables businesses in 2011 and 2013.

In 2013, Trajan made the significant acquisition of the chromatography and liquid handling businesses of SGE Analytical Science, a business operating in the highly specialised analytical syringe sector, as well as having a range of other chromatography products.

In 2015, Trajan made the strategic decision to focus its core expertise and operations on where it could impact data quality, being everything that touches the sample in the analytical workflow. Trajan invested significantly in the modernisation of its manufacturing processes and relocated its US and European operations into modern, custom‑fitted facilities, as it did with workflow automation provider LEAP Technologies, Inc. (LEAP), which was acquired in 2016.

Trajan has operations in Australia and across the United States (US), Europe and Asia.

It is anticipated that TRJ will list on the ASX during June 2021.

Trajan Scientific and Medical

Trajan Scientific and Medical was founded to make a positive impact on human wellbeing. Design, manufacture and marketing of scientific and medical devices.

www.trajanscimed.com

 

[Dona Ferentes]

Listing date	7 June 2021 10:30 AM AEST ##
Company contact details	https://www.trajanscimed.com/ Ph: (03) 9837 4200
Principal Activities	Development and manufacture of analytical and life sciences instruments and devices
GICS industry group	TBA
Issue Price	$1.70
Issue Type	Ordinary Fully Paid Shares
Security code	TRJ
Capital to be Raised	$90,000,000
Expected offer close date	25 May 2021
Underwriter	Fully underwritten. Canaccord Genuity (Australia) Limited and Ord Minnett Limited (Joint Lead Manager)

 

[Dona Ferentes]

Trajan opened at $1.90, hit $2.05 during the day and closed at $1.98.

The founders have stated they have no intention of selling down more than was released into the float ($40M), keeping their holding at 59%.

The key products of Trajan include a range of items that facilitate the chemical separation of components in a sample, such as microscope slides and coverslips, and analytical syringes. The company had made seven acquisitions before the IPO, and is eyeing more targets, which is part of the reason it tapped public markets.

Proceeds will also be used for manufacturing modernisation to drive margin gains and accelerate commercialisation of new technologies such as its hemaPEN micro blood sampling device and a miniaturised instrumentation that is now the prototype inside major US pharma players working on how to monitor the next generation of pharmaceutical manufacturing.

 

[Dona Ferentes]

Asked why the future of Trajan might be bright for investors, CEO Stephen Tomisich provided solid reasons:

"Clearly I am (as a founder and CEO) investing in it, so maybe that is a good sign that we are maintaining majority shareholding. But if you look at our business history, what I like about it is its substance and underlying resilience."

"We have 80 to 85 per cent of our revenues in recurring revenues, and those have proven to be resilient even right through COVID."


"Unlike many healthcare stocks, it is not a case of make or break with Trajan. We have a very healthy economic engine that underpins the business, but we still have the upside of that entrepreneurial and disruptive approach to new technology development, and I think it's the combination of those that excites me about the business."

$2.17 on Day Four

 

[Dona Ferentes]

Trajan designs and manufactures a portfolio of precision consumable products, devices and solutions. These products and solutions are used in the analysis of biological, food and environmental samples.

CEO Stephen Tomisich says the company is operating in both the healthcare and data technology sectors.

“There’s a collision of two worlds happening. Our vision is around the fact that our solutions will lead to data-based decision making in healthcare, and if we’re going to have data-based decision making, it can only be as good as the underlying data.”

“So what we’re focused on uniquely is all the physical tools that can impact the quality of that data,”

 

[peter2]

Started a spec position in TRJ today. It may have been me that caused today's price break-out. I was a bit annoyed that I lost track of TRJ at the earlier break-out (sloppy). The only reason I describe this as a spec position is due to the low average daily volume. We'll see what happens.

 

[HelloU]

Annual tip pick - I have nothing but hope and best wishes for this new list. Fingers crossed for the Melbourne mob.

 

[Dona Ferentes]

TRJ is coming up for 12 months on the ASX. It is still ahead of where it listed, $1.70, but has come down from that January high of $4.59 to almost halving. Now trading at $2.54.

Is it any different a company to 12 months ago? The MD said at IPO that capital raised, which only amounted to $50 million, would go to acquisitions. It would appear that around $20Mill is still unallocated.

• Trajan acquired the businesses of Axel Semrau in November 2021, and
• Neoteryx and LEAP Pal Parts and Consumables in December 2021. These businesses provide additional capability, resources, services, and products in the areas of laboratory automation, blood microsampling, and laboratory consumables respectively.
• In addition, Trajan made a strategic investment in consumer health monitoring business Forth with Life in November 2021.

The company paints a positive picture
• Expecting continued revenue growth across a broad range of products and customers, with full impact of acquisitions to be realised, and organic growth to remain high.
• Gross margin expansion, driven by scale and efficiency benefits, expected to continue.
• Forecast excludes any further acquisitions; however, we remain active.

However, market conditions have seen delays in implementing some projects, with supply of electronics an issue.