Energy Mad projects $1.1m full year loss vs. $4m profit in prospectus
Feb. 27 (BusinessDesk) - Energy efficient lightbulb innovator and marketer Energy Mad has issued the latest in a string of downgrades since its listing in late 2011 and is now projecting a loss of $1.1 million for the year to March 31.
That compares with a $4 million forecast profit in its 2011 prospectus and a revision just two months ago to expect a profit at the low end of a range between $100,000 and $2 million.
The latest downward revision has been caused by "delays in securing a further large United States order before the end of the current financial year."
The business has already faced manufacturing problems at its plant in China and slower than anticipated regulatory approvals in Australia, which have held back growth projections across the Tasman.
The company is embarking on a cost-cutting drive to find $900,000 in operational savings and has dispensed with the role of chief operating officer.
Energy Mad also announced today its chief financial officer, Paul Ravlich, would become chief executive, replacing managing director Chris Mardon, who will be freed up to focus on sales growth, particularly the 12 volt Ecobulb in the Australian market and opportunities in the US with retailer Walgreens and with electricity utility operators.
Shares of Energy Mad last traded at 42 cents.