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NSW Central Coast-based Janus Electric (ASX: JNS) is losing its second key executive in just four months with CEO Ian Campbell handing in his resignation today for 15 December, marking a challenging end to the truck electrification group's first year as a listed company following a reverse takeover of ReNu Energy in May.
Campbell has only been with Janus Electric since then, leading the group with growing orders and new partnerships signed for its service that converts heavy haulage. diesel-based trucks to electric powertrains with swappable battery technology.
But his tenure has hit some potholes, including the exit in August of Greg Watson - an executive who was at the helm of ReNu either as CEO or managing director for five years, before he became Janus Electric's CFO and company secretary through the reverse listing.
Watson's resignation, and the fact it took more than two months to find his replacement in Philip Hempenstall as CFO, was likely a key reason why the business was suspended from quotation at the start of October for not meeting its reporting requirements.
It wasn't until 20 November that Janus Electric was able to lodge its annual report for FY25, allowing for a reinstatement to quotation the following day.
The report showed net operating cash outflows of $6.6 million due to large one-off costs relating to the acquisition of ReNu and its $2 million loss, as well as interest expenses and a slow revenue ramp-up as trucks were brought back on-line after a battery recall that was completed in January.
"We have focused intensively on strengthening our operational foundation to ensure Janus can deliver on its mission of transforming Australia's heavy transport sector through innovative electric truck conversion technology and providing Battery and Energy as a service," Campbell wrote in the annual report.
"The transition to an ASX-listed company has challenged the process, procedures and cultural collaboration and accountability.
"While the governance requirements and regulatory compliance demand of public company status have required substantial management attention and resources, this framework is establishing the operational discipline and transparency that will serve us well as we scale our operations."
The Janus Electric board includes former Bubs Australia (ASX: BUB) chair Dennis Lin and founder-CEO Kristy Carr, both of whom were fired from the baby formula group in 2023 in a spat that was eventually settled last year.
Lin, who just a month ago met with US Vice President JD Vance to discuss another energy-related company he is involved in called Infinite Power Holdings, is the non-executive chair of Janus Electric and spoke glowingly of its prospects in the annual report.
"It is the conviction of the board, management and key shareholders that Australia deserves to be a country where innovation can be nurtured on home soil, and a world class technology such as Janus can be embraced by the public," Lin wrote.
"Invariably, on the path to innovation and commercialisation, there are bound to be challenges, delays and difficulties along the way. Janus is no different. With the deepest desire and ambition to creating an enduring and sustainable technology, over $17 million of capital had been invested prior to becoming a listed entity through the transaction with Renu Energy Limited.
"Through those years of development and investment, our business has the potential to immediately transform the heavy transport industry in Australia and beyond. Following re-listing, the team have spent much time in ensuring that the organisation and operations are structured for long-term success and mass production.
"We have orders to fulfil, trucks to convert and deliver, and we will continue to be singularly focused on business fundamentals and priorities."
The acquisition gave the company a valuation of $24.5 million but the share price has eroded steadily over time. Today's announcement led to a further 38 per cent drop to 5.9 cents per share (cps) at the market close, implying a market capitalisation of just $6.9 million - less than what Janus Electric raised in the first place.
The board has thanked Campbell for his contribution since Janus Electric's listing on the ASX, wishing him the best in his future endeavours. The outgoing CEO has urged shareholders to be patient.
"I wish the Janus family success and good fortune in their highly innovative endeveours to electrify the Australian heavy vehicle transport sector," Campbell says.
"The technology and committed people are the foundational elements required to help recreate how we consider the economic and emissions outcomes of one of Australia’s largest GDP contributors.
"Janus needs the support of its patient shareholders, government to help overcome short term barriers, and the continued support of its wonderful customers (early adopters) within the transport sector to deliver a positive outcome for Australia, and inspire the next generation of startups."
With an active search underway for Campbell's replacement with the help of a recruitment firm, COO and founder Lex Forsyth and CFO Phil Hempenstall will together perform the functions of the CEO until a successor is appointed.
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