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

 


Energy Mad shares drop to four-month low on widening FY loss

Energy Mad shares drop to four-month low after posting wider annual loss

By Tina Morrison

May 28 (BusinessDesk) - Shares in Energy Mad were the biggest decliner on the stock exchange today after the energy efficient light bulb marketer more than doubled its full year loss and signalled it may lose access to $7.7 million of tax losses.

The Christchurch-based company made a loss of $5.7 million, or 13 cents a share, in the year ended March 31, from a loss of $2.5 million, or 7 cents, a year earlier, it said in a statement. Revenue fell 19 percent to $7.5 million. The company's shares dropped 9.1 percent to a four-month low of 30 cents.

In the past year, Energy Mad wrote down the value of its research and development by $1.4 million to $400,000, reflecting that its new range of Ecobulb LEDs supersede its compact fluorescent lamps, and wrote down the value of its existing lamp stock by $200,000. The company also wrote down a $2 million deferred tax asset off its balance sheet and signalled it may lose access to that asset upon becoming profitable because one of its long-standing shareholders may sell their stake, meaning it will no longer comply with minimum shareholder continuity requirements. The company is set to lose access to $7.7 million of its $12.4 million gross tax losses should the shareholder exit its stake, it said.

In the US, sales fell to $200,000 in the year through March from $2.5 million a year earlier as retailer Walgreens failed to order more stock. Walgreens has now placed two reorders for a total of $140,000 for the coming financial year, Energy Mad said.

In Australia, sales dropped to $4 million from $4.6 million the year earlier as a large customer reduced their order by $1.4 million, the company said. European revenue rose to $400,000 from $20,000 a year earlier, it said.

New Zealand direct installation revenue, where the company sells and installs Ecobulb downlights and associated insulation in homes, increased to $2.9 million from $2 million a year earlier.

The company said it plans to step up its New Zealand operation which will see an outsourced field force demonstrating LED Ecobulb light bulbs in homes and estimating savings to be made from making the switch. The new LED Ecobulbs use as much as 90 percent less electricity than the inefficient light bulbs they replace, while lasting up to 25 times longer, the company said. Some 900,000 New Zealand homes use inefficient incandescent and halogen downlights, it said.

"The current low uptake of LEDs in New Zealand, combined with little competition in the direct to consumer space, creates a significant market opportunity that Energy Mad is well positioned to take advantage of," the company said.

Energy Mad plans to outsource elements of its operations to an international third party field force, it said.

The company won't pay a dividend, consistent with the year earlier.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Crown Accounts: Government Ekes Out Six-Month Surplus Of $9M

The New Zealand government eked out a tiny surplus in the first six months of the fiscal year as growth in domestic consumption lifted the goods and services tax take, while uncertainties over the Kaikoura earthquake costs meant expenses were less than expected. More>>

ALSO:

Almost 400 Jobs: Shock At Cadbury's Dunedin Factory Closure

Workers at Cadbury in Dunedin are reeling after learning this morning that the iconic Cadbury factory is to close, with the loss of almost 400 jobs... “The company had reported it was doing well and this has come out of the blue,” says Chas. More>>

ALSO:

Transport: Boards Of Inquiry For Auckland Roading Projects

Boards of Inquiry have been appointed to decide on two significant Auckland roading projects in a move which will get a decision by the end of the year, Environment Minister Dr Nick Smith and Conservation Minister Maggie Barry announced today. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news