Energy Mad cuts guidance, again, after deal delays

Free audio stream, including stories that are padlocked on our site. Listen on any device, anywhere. Updated twice daily. The audio stream takes several seconds to start on Android devices.

Launch Radio player

Christchurch based light bulb maker, Energy Mad, is expected to post a full-year loss, following its second earning guidance cut in a single month.

Following the company’s failed attempt to close a $1.8 million deal with a major client, the Christchurch based company has said it is expecting a forecast of earnings before interest, tax, amortisation and depreciation loss of $700,000, from last month’s EBITDA profit of $1.1 million.

Chairman of Energy Mad, Rick Ramsay said in a statement that the company is mainly project driven which explains its recent slump in revenue.

“Energy Mad has made substantial progress since it listed late last year, has sufficient cash reserves to execute its plans, and remains committed to delivering its full-year 2013 forecast in full.”

Last week the company had attained Australian accreditation and has said production within the company is expected to reach its full capacity by the end of February 2012.

The 2013 year still expects to be profitable for the light bulb manufacturer, forecasting EBITDA of $6.2 million on revenue of  $21.3 million in the 2013 financial year.

Shares remained unchanged at 58 cents last week Friday, having decreased 42% from its listing price of $1 in November last year.

6 · Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

Post Comment

6 Comments & Questions

Commenter icon key: Subscriber Verified

Listed 4 months and 2 profit downgrades - awful look. No doubt a few lawyers will be starting to read the risks section of the prospectus, and Woodward Partners (Lead Managers) will be reviewing the thoroughness of their financial models. Market will almost certainly wait to see the delivery of the 2013 profit projections, rather than any benefit of doubt.

  • 0
  • 0

And the goverment wonders why people invest in land at least you can sell grazing to all the cowboys out there.

  • 0
  • 0

This was never going fly. Nothing special or unique about CFL light bulbs - already massed-produced in China for a few cents ....while the world is now leaving that technolgy behind and moving on to LED...

  • 0
  • 0

Energy Mad rose on the back of Labours policies, though shalt use less shower water, though shalt use petrol with extra ethanol (or was it methanol) with no consideration to the real world market.

Energy Mad bulbs look awful and the response from other lighting heavyweights with LEDs will send the company to the grave.

The problem is not that NZ companies are no good, its that an IPO was launched for a company that was manufacturing and delivering apples to a market that wanted pears. No amount of marketing or cheap manufacturing will solve eMad's problem, the market has moved on.

  • 0
  • 0

This is disgraceful

The FMA and NZX should be investigating immediately. The prospectus must have been flawed and inaccurate for the huge turnaround in 4 months - most of the promised projected revenue must have been fictional or "dreamworld".

This announcement gives no confidence in the Capital markets at a time when the nZ capital markets need sanity and integrity to grow. What's changed since the 1980's - all rhetoric and fluff from Weldon and NZX and the judge is out on the FMA. In the 1980's compnaies like ENZED ( the hydraulic hose maintenance company ) were floated and bombed - whats different to the light bulb company ?? At least ENZED made money - although not much

  • 0
  • 0

So they nclaim there is a delay in a large order. If that is the case then that should just shift sales and profit into the next year. So why is the company not expecting higher sales and profits in 2013, if some of the sales from 2012 has shifted. This smells, looks like some reality has come home to them and the whole forecast / projection has to be seriously questions.

The problem with forecasts / projections are they are all based on assumptions which can be miles out.

This company was too young to list on a market not used to venture capital investments.

  • 0
  • 0

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot


Sym Price Change
USD 0.6454 -0.0024 -0.37%
AUD 0.9021 -0.0004 -0.04%
EUR 0.5771 0.0010 0.17%
GBP 0.4195 -0.0008 -0.19%
HKD 5.0087 -0.0120 -0.24%
JPY 78.6100 0.1980 0.25%


Commodity Price Change Time
Gold Index 1133.3 8.740 2015-08-28T00:
Oil Brent 50.0 2.490 2015-08-28T00:
Oil Nymex 45.2 2.660 2015-08-28T00:
Silver Index 14.5 0.120 2015-08-28T00:


Symbol Open High Last %
NZX 50 5634.9 5688.3 5634.9 0.63%
NASDAQ 4792.1 4836.8 4812.7 0.32%
DAX 10335.9 10336.9 10315.6 -0.17%
DJI 16649.4 16670.0 16654.8 -0.07%
FTSE 6192.0 6247.9 6192.0 0.90%
HKSE 22424.4 22424.4 21838.5 -1.04%
NI225 18908.7 19192.8 18574.4 3.03%