In the small-cap sector, it’s rare to find businesses that are both generating revenue and profitable—especially on the Aquis Market, known for early-stage companies.
But Majestic Corporation (AQSE:MCJ), a recycling company founded by Australia-born entrepreneur Peter Lai, is a standout exception.
Monday saw the release of interims which showed a 92 per cent increase in revenues to $25million prompting a 33 per cent rise in pretax profit to $1.2million.
Majestic is the epitome of a niche business, carving out a sustainable, defensible, high-growth segment in the emerging circular economy – the sustainable system of recycling and reuse.
UN figures suggest 54 million metric tonnes of electronic waste are produced annually, equating to about 7 kilograms for every person on the planet
Its competitive edge lies in the intricate relationships with smelters and end users it has built and fostered over the past 25 years, allowing it to create long-term value.
Barriers high
‘Regulatory barriers and high capital requirements make it tough for competitors to replicate its operations,’ notes Andrew Male, the company’s recently appointed non-executive director. ‘It’s not something you can do out of the box.’
Majestic is strategically tapping into the rising tide of disposable IT equipment, catalytic converters, and battery materials, as well as the growing imperative to recycle these materials.
The United Nations Environment Programme reports that 54 million metric tonnes of electronic waste are produced annually, equating to about 7 kilograms for every person on the planet. Only 17 per cent of this e-waste is currently recycled, and without significant action, the figure is expected to double by 2050.
Wealth of material
Majestic’s recycling operations focus on three main areas: consumer and professional electronics, catalytic converters from vehicles, and base metals found in electrical equipment.
These processes yield a wealth of valuable elements such as copper, aluminium, gold, silver, platinum, cobalt, graphene, and nickel.
Male, a seasoned veteran of the extractive industries, highlights the potential of this approach: ‘One tonne of waste material might yield up to 15 grams of gold,’ he points out. In mining terms, these are called ‘bonanza grades’—exceptionally high yields.
Majestic achieves this without the need for expensive exploration or the large capital investments typically required to develop a gold mine.
Its extensive network of subsidiaries and affiliates spans worldwide. Through this network, the company sources, acquires, stores, and processes materials, which it later supplies back to refineries, reintroducing them into the global supply chain.
Long-term relationships
Processing over 30,000 metric tonnes of waste annually, the company has built long-term relationships across the sector, offering investors exposure to key themes like decarbonisation and national efforts to secure critical materials and supply chains.
Several factors position Majestic for sustained growth. By focusing on niche markets, the company provides a highly personalised service to customers who are often overlooked by larger competitors.
In today’s world, where decarbonisation and circular economy principles are gaining ground, Majestic’s focus on environmentally sound practices resonates with clients seeking sustainable business solutions.
Looking ahead, the group has ambitious plans for growth. Research from Pitt Street suggests that the company is targeting a 400% increase in sales over the coming years.
Quick acceleration
Central to these aspirations is Telecycle Europe Limited, an affiliate that owns a rapidly expanding facility in Deeside, Wales. Male is enthusiastic about the site’s growth: ‘The operation in Deeside has really accelerated quickly over the past couple of years and continues on a fast-paced trajectory.”’
Majestic has also announced it is set to conditionally acquire Telecycle.
The appointment of Male, who brings a wealth of managerial and capital markets experience from both the UK and Canada, signals that Majestic is assembling the talent required for its next phase of growth.
Additionally, the company’s recent Enterprise Investment Scheme (EIS) status offers generous tax advantages to investors, opening the door for venture capital trusts to join Majestic’s shareholder register as the company looks to issue fresh equity.
One for the watch-list
Diversification and expansion of the shareholder base, currently dominated by a small number of early investors, will be key to increasing liquidity and enhancing the stock’s value. This process may ultimately lead to a move to a more senior exchange, although the company has remained quiet on this possibility for now.
As Male acknowledges, ‘We are effectively a listed private company. But at the moment, our aim is simply to raise awareness of Majestic and the opportunity.’
In other words, Majestic is definitely one to watch.
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