Energy Mad posts maiden $0.3m first-half loss; on track to deliver IPO forecast

Thursday 17th November 2011

Energy-efficient light bulb company Energy Mad said its $0.3 million first-half net loss reflected cash constraints delaying the placement of large Australian Ecobulb orders.

However, the company is on track to deliver its full-year prospectus projections, it said.

The prospectus forecast a net profit of $2.1 million for the year ended March 31, 2012, rising to a $3.6 million profit the following year.

The result for the six months ended September 30 compared with an $0.6 million profit in the previous first half and sales halved to $3.2 million from $6.6 million.

Energy Mad is projecting a large revenue “ramp-up” in the second half “based on having the resources from a successful IPO to overcome its cash constraints.

This was the primary reason Energy Mad undertook its IPO,” the company said. Energy Mad raised $5 million, only half what it had sought, and its shares listed on NZX on October 19.

While the shares, issued at $1 each, initially traded at a small premium of $1.05, they closed yesterday at 85 cents although trading volumes have been slight.

The company said discussions are advanced with several large US electricity utilities to implement Ecobulb projects.

It said it has recently developed working prototypes of a new Ecobulb downlight using an innovative tube technology which is a direct replacement for inefficient halogen and incandescent downlights.

The downlights, which use only 20% of the electricity of existing equivalents, are aimed at replacing hundreds of millions of existing halogen and incandescent downlights in New Zealand, Australia and Europe.

BusinessDesk.co.nz

Comments from our readers

No comments yet