Energy Mad annual loss narrows as Australian sales surge

Energy Mad [NZX: MAD], the energy efficient lightbulb marketer, narrowed its annual loss as Australian sales surged higher.

The net loss was $1.3 million in the year ended March 31, from $3.2 million a year earlier, the Christchurch-based company said in a statement. Revenue rose 42 percent to $8.4 million, as Australian sales jumped to $6.2 million from $3.4 million a year earlier while New Zealand sales edged up 1 percent to $2.2 million.

Energy Mad said the Australian growth came from its development of new LED ecobulbs targeted towards state government energy efficiency schemes in Victoria, South Australia, and the Australian Capital Territory. It said there is increased potential in the schemes, which were all extended last year, with Victoria and ACT's schemes pushed out to 2020. It expects a decline in orders for its fluorescent bulbs to be "more than offset" by an increase in LED sales in Australia.

The company made an operating profit of $550,000 between February and April 2016, excluding non-core operating items of $210,000, a foreign exchange gain of $137,000 and depreciation and amortisation of $75,000. Energy Mad said it expects this operating profit to continue in 2017, and the result "represents the beginning of a turnaround for the company, a positive move for NZX's majority investor SuperLife and other shareholders."

In March, chief executive and chief financial officer Paul Ravlich resigned after three years running the unprofitable lightbulb maker. The CEO role was added to Mr Ravlich's existing CFO position in February 2013 when managing director Chris Mardon stepped aside to focus on sales growth. In December, the company said it would split out the two positions again and disestablish the current joint role, because a more conventional structure would allow the company "to better serve its growing Australian market, alongside its New Zealand operations."

Energy Mad shares gained 13% to 6c this morning and have gained a third this year. The stock has tumbled since listing in 2011 after being sold in an initial public offering at $1 apiece.

(BusinessDesk)

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