Low profile Western Australian businessman Gordon Martin says he has “zero interest” in pursuing a public listing of his company Coogee Chemicals.
With assets in excess of $160 million, turnover of about $200 million and a long record of success, brokers would be queuing up to float Coogee.
However Mr Martin believes stockmarket investors focus too much on short-term profits.
“Listing simply takes your focus away from long-term wealth creation to short term share price focus,” Mr Martin said.
“You can’t look long term unless you have BHP’s balance sheet.”
Mr Martin has substantial experience in both private and public companies.
While Coogee has been his main focus for the past 30 years, he has also served as a director of listed companies United Group and Burswood.
He is also chairman of venture capital firm Foundation Capital, which for the past decade has provided an alternative to the stockmarket for growing businesses.
Mr Martin retains about 90 per cent ownership of Coogee, with the balance held by chief executive Peter Hood and other executives.
He said the staff shareholding, as well as a profit-sharing scheme, were used to help motivate Coogee’s staff.
“People are the most critical factor in Coogee’s success. You need to motivate them and create a sense of excitement.”
Mr Martin said company culture was another critical ingredient in Coogee’s success.
“You need a culture of innovation and a can-do approach.”
He added that staff needed to have a strong customer focus.
To illustrate this point, Coogee has no sales staff, instead divisional heads deal direct with customers.
He also emphasised the importance of integrity, which he said came from the top people in the company.
“A fish rots from the head,” he said.
Mr Martin acknowledged that handing over day-to-day management to chief executive Peter Hood seven years ago had been very hard.
The next succession challenge was ensuring his children had the right focus.
“I instil in the kids that the company comes first,” he said.