FLLYR: PLU: PLU - Full Year Results for the period ending 31 March 2010

14 Jun 2010 3:29 pm

PLU 14/06/2010 FLLYR

REL: 1529 HRS Pulse Utilities New Zealand Limited

FLLYR: PLU: PLU - Full Year Results for the period ending 31 March 2010

Pulse Utilities New Zealand Limited Preliminary Full Year Results for the year ending 31 March 2010

Pulse Utilities New Zealand Ltd Results for announcement to the market

Reporting Period 12 months to 31 March 2010 Previous Reporting Period 12 months to 31 March 2009

Amount (000s) Percentage change Revenue from ordinary activities $NZ 1,963 659.3% Profit (loss) from ordinary activities after tax attributable to security holder. $NZ (7,049) 32.7% Net profit (loss) attributable to security holders. $NZ (7,049) 32.7%

The results are based on financial statements that are in the process of being audited.

Interim/Final Dividend Amount per security Imputed amount per security

It is not proposed to pay dividends.

Record Date Not Applicable Dividend Payment Date Not Applicable

Comments:

Pulse Utilities New Zealand Limited (Pulse) reports an unaudited loss of $7,049,464 for the 12 month period to 31 March 2010 including amortisation, depreciation and impairment write-off of $4,138,878. A large part of the loss is due to the total write-off of the Australian Intellectual Property. The write-off not only reflects the Directors view in relation to the likely value of the Australian IP but also reflects our focus on the New Zealand retail market.

Pulse Utilities New Zealand Limited revenue correlates to the number of completed installations. Total sales for the period were $1,963,029 with the customer base growing to more than 3,800 as at 31 March 2010 compared to 446 as at 31 March 2009.

The Directors are delighted with the customer acquisition rate which has been consistent since the launch of our retail brand "Pulse Energy" in 2009. The company is currently gaining around 350 customers per week. At this rate of customer acquisition, the Directors are confident that the company will meet its objective to acquire 61,000 customers by 31 March 2013.

As at 31 March 2010 the net asset position declined by $1,468,210 from $2,813,740 the previous year. Current liabilities are $3,924,624 of which $2,281,091 relate to convertible loan notes which may be redeemed for cash or convert to equity. As at 31 March 2010 net tangible assets per share were ($0.169) compared with ($0.176) the year before.

Capital Raising

The Directors are very satisfied with the company's fundraising success during the year. Significantly, the company raised $4,306,500 through the issue of ordinary shares in December 2009. This fundraising has secured some of the company's funding needs to get it through to a position of profitability. It is expected that a further capital raising programme will be conducted later in 2010 to fully secure the company's future growth opportunities. A net total of $1,495,483 was raised through convertible loan notes in the 12 months to 31 March 2010. The company continues to raise money through a $4m convertible loan note offering approved at the Extraordinary General Meeting held 15 April 2009.

Outlook

The Directors believe that the Company is well positioned and are very satisfied with the progress made this year under the leadership of CEO, Dene Biddlecombe.

We are generally pleased with the developments from the Ministerial Review and believe that these will provide significant possibilities for Pulse to develop its business model.

Most significantly, the customer acquisition rate that the Company is now achieving means that we can build a substantial New Zealand electricity retail company without increasing the overheads of the business. The budget for the year ended 31 March 2011 is for around 23,000 customers and negative EBITDA of approximately $1.3 million. The forecast for the year ended 31 March 2012 is for more than 40,000 customers and positive EBITDA of more than $6 million. End CA:00196073 For:PLU Type:FLLYR Time:2010-06-14:15:29:53

More announcements for PLU