Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Energy Mad 1H loss widens as quality control damps Oz sales

Energy Mad 1H loss widens as quality control stymies Australian sales

Nov. 29 (BusinessDesk) - Energy Mad, which raised $5 million in an initial public offering last year to kick start sales of its energy-efficient light bulbs, widened its first-half loss after quality control issues in manufacturing a halogen bulb replacement for the Australian market. The shares dropped 8.5 percent.

The loss was $500,000 in the six months ended Sept. 30, from a loss of $300,000 a year earlier, the Christchurch-based company said in a statement. That missed its IPO forecast for a $1.7 million profit. Sales rose 47 percent to $4.8 million, about half the$9.8 million revenue it had forecast.

The company sold the shares at $1 apiece in its IPO in October 2011. They fell 5 cents to 54 cents on the NZX today, valuing the company at $20.4 million. The shares dropped as low as 49 cents on May 18.

Sales in the full year were likely to be $13 million to $20 million, missing the IPO forecast of $21.3 million.

The company has been aiming to ride a global wave of demand for energy-efficient bulbs as more countries phase out incandescent and halogen bulbs. Part of that growth is aimed to come from deals with energy utilities and other bodies via subsidies for products that save power.

Within three months of listing on Oct. 19 last year the company cut its guidance for the 2012 year, when it posted a loss of $1.1 million while saying it remained committed to its 2013 IPO targets.

In the first half of 2013 sales in its largest market of Australia fell 4.8 percent to $1.99 million, while in the US sales more than tripled to $1.6 million and sales in New Zealand jumped to $924,757 from $108,815. It made no sales in the rest of the world compared a $416,563 a year earlier.

The company made zero sales of its 12 volt Ecobulb in Australia in the first half, a $3.1 million shortfall, while sales of its 240VEcobulb downlight were $1.3 million short of target.

There was no production of the 12V Ecobulbs in the period because of required design changes, it said.

It also suffered premature failures of the 240V Ecobulb downlight which it said were due to a poor connection between the spiral tube into the downlight fitting that forced it to revise the design. As a result, Australian customers “lost confidence” in the product. It is more confident for the outlook for a new dimmable 12V Ecobulb.

To speed product development the company hired two technicians in Christchurch rather than just rely on work done at its Chinese factory.

It sees growth in US sales thanks to distribution through 8,200 outlets of retailer Walgreens.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Maritime: Navigation Safety Review Raises Big Issues For The Govt

Shipping Federation: "The reports makes it clear that the ratification of the Maritime Labour convention (MLC) is long overdue. Only when the MLC is ratified will Maritime NZ be able to inspect and enforce the labour conditions on international ships visiting our ports." More>>

ALSO:

100 Years After Einstein Prediction: Gravitational Waves Found

For the first time, scientists have observed ripples in the fabric of spacetime called gravitational waves, arriving at the earth from a cataclysmic event in the distant universe. This confirms a major prediction of Albert Einstein’s 1915 general theory of relativity and opens an unprecedented new window onto the cosmos. More>>

ALSO:

Farming: Alliance Plans To Start Docking Farmer Payments

Alliance Group, New Zealand's second-largest meat cooperative, plans to start withholding some stock payments to its farmers from next week to bolster its balance sheet and force suppliers to meet their share requirements. More>>

ALSO:

Gambling: SkyCity First Half Profit Rises 30%, Helped By High Rollers

SkyCity anticipates the Auckland business will benefit from government gaming concessions which were triggered on Nov. 11 in recognition of SkyCity’s $470 million Convention Centre development. Morrison said the concessions would allow the Auckland business to lift its activity during peak period, noting it had a record revenue week over the Christmas and New Year period. More>>

ALSO:

Money For Light: Kiwi Scientists Secure Preferential Access To Synchrotron

Science and Innovation Minister Steven Joyce today announced a three-year investment of $2.8 million in the Australian Synchrotron, the largest piece of scientific infrastructure in the Southern Hemisphere, to secure preferential access for Kiwi scientists. More>>

Telco Industry Report: Investment Hits $1.7 Bln A Year

Investment in the telecommunications sector is $1.7 billion a year, proportionately one of the highest levels in the OECD, according to a report released today on the status of the New Zealand sector. More>>

ALSO:

PGPs: New Programme Sets Sights On Strong Wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand's strong wool sector... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news