Energy Mad hails 'turning of the corner' at AGM

Thursday 28 July 2016 03:17 PM

Energy Mad hails 'turning of the corner' at AGM

By Edwin Mitson

July 28 (BusinessDesk) - Energy Mad, the energy efficient light-bulb maker, says it made an unaudited operating profit of $348,000 in the first three months of its financial year 2017, hailing a modest "turning of the corner" as it focuses on meeting demand driven by state-supported schemes in Australia.

The Christchurch-based company posted an operating loss of $895,000 for its full year 2016 as it restructured its business to focus across the Tasman. That loss was significantly less than the $2.9 million recorded in 2015.

In a statement to the NZX following its annual general meeting, chair Brent Wheeler said there was an expectation that the improved performance would continue, but "naturally in the current environment we are cautious, anything else would not be prudent."

Energy Mad has moved to focus its business on selling LED bulbs to Australian state government energy efficiency schemes with Victoria and the Australia Capital Territory both extending their programmes to 2020. In slides published to the NZX, Energy Mad said there was potential from increased targets in Victoria, South Australia, and the ACT. It also added there were opportunities from changes in the scheme in New South Wales and Queensland could introduce its own scheme.

Co-founder Chris Mardon left the board in March to focus on its Australian operation. Sales in Australia in the previous financial year were $6.2 million, compared to New Zealand sales of $2.2 million. The company has set out plans to create an Australian sales office.

Wheeler also thanked shareholders for their support. The company listed on the NZX at $1 a share in 2011 but its value has collapsed over the last five years.

Its shares were one of the biggest fallers on the NZX today, dropping 3.3 percent or 0.2 of a cent to 5.8 cents, although that reflects just one trade. The shares have declined 50 percent since the start of the year.

(BusinessDesk)

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