Pulse Announces Positive Earnings
Pulse Announces Positive Earnings
Pulse Utilities today updated its shareholders at its AGM that in the 4 months to 31 July 2012 Pulse achieved earnings before interest, tax, depreciation, amortisation and fair value adjustments (EBITDAF) of $1,743,000. This was against budget EBITDAF of $206,000 for the 4 month period. A 31 March 2013 year end budget EBITDAF of $556,000 was set for the company but after 4 months of trading the full-year budget has already been exceeded. This compares with the full year EBITDAF loss at 31 March 2012 of $5,226,621. Operating cash flow has been positive for the 4 months and exceeded budget by $2,218,000. The four month results are unaudited.
The Chairman of Pulse, Joseph van Wijk, said it was very satisfying to see the patience of shareholders paying off and he looked forward to more good news in the future.
Pulse also announced that the recent strategic review of the company has been completed. Given the growth of the company, the Board decided earlier this year to undertake a review of strategic opportunities available to Pulse in order to sustain its business growth in the long-term and maximise shareholder value.
As a result of the review, the Board received several proposals; including the outright purchase of Pulse or the opportunity to enter into a strategic alliance with other parties in the electricity industry. However, the Board felt that the opportunities presented by these proposals did not provide shareholders with sufficient upside considering the gains the company has already made as announced today. The Board determined that shareholders will be better served if the company continued on its growth strategy in its own right. The Board decided that a small level of additional funds should be raised to secure the growth path. To this end, Pulse is close to completing private placements with new qualified investors at 6 cents per share for approximately $1 million. These private placements will be completed shortly.
The Board considers that all shareholders should also be given the opportunity to purchase additional shares at 6 cents per share. Therefore, Pulse intends to offer a share purchase plan to shareholders at 6 cents per share in early 2013 when shareholders will have the benefit of the half-year results to September 2012 to assist them in their decision making. Pulse is in negotiations to have that share purchase plan partially underwritten by qualified investors. An announcement confirming the outcome of those negotiations will be made in due course.
Our majority shareholder, Buller Electricity has confirmed its continued support.
The Board is confident of the long term future of Pulse and thanks shareholders for their support.
Pulse Utilities New Zealand:
Pulse Utilities New Zealand Limited is the parent company of electricity retailer Just Energy, offering a fair deal and real value; independent electricity retailer and smart meter specialist, Pulse Energy; and specialist metering company, Pulse Metering Limited. Pulse Utilities New Zealand was listed on the New Zealand Stock Exchange – on the NZAX Board in November 2007.
Just Energy specialises in bringing competitive energy pricing to the New Zealand marketplace. Launched in July 2010, it is now one of the country’s fastest growing independent energy retailers. Just Energy customers enjoy the benefits of a fair deal and real value at their best possible local price.
Pulse Energy’s time-of-use metering system provides customers with the knowledge to shift their energy usage to more cost effectively and environmentally friendly times. Its metering systems are used by a range of customers including multi-tenanted apartments and office blocks, small businesses and residential homes.
Pulse Metering is a standalone meter and time-of-use meter data management company. It provides independent, specialist metering services to a growing number of electricity retailers and market participants.