Shares in energy efficient light bulb maker Energy Mad [NZX: MAD] have doubled today, touching a two-year high of 68 cents, after a string of positive announcements about the company's US market growth.
Over the past two years the Christchurch based company has suffered a series of setbacks since its IPO in late 2011, consistently missing prospectus forecasts. Last year it wrote off a $2 million tax benefit, compounding its $500,000 loss in the six months to Sept. 2013.
The company announced it was selling its light bulbs under its United States Ecospiral brand through online retailer Amazon United States before the NZX opened today. This is the latest in a string of upbeat announcements from the company including securing resupply with US drug store chain, Walgreens, and a successful two week, single store direct mail campaign with American energy utility National Grid. Direct mail campaigns with some other 18 US electricity utilities are at the expression of interest stage.
A "relatively small" reorder of US$46,000 for Energy Mad's 3-pack 15 watt energy-saving bulbs from Walgreens was "pleasing," the company said in a statement.
The "key milestones" in the US come after Energy Mad announced a significant fall in sales for the six months ending Sept. 30 to $0.1 million, compared to $1.6 million for the same timeframe in 2012.
"We've got the same strategy as we had on day one, get into the New Zealand, Australian and US market," Chris Mardon Energy Mad managing director told BusinessDesk. "We've had a couple of core wins recently, so it's nice to see our share price going up, to see our hard work paying off. We've had a lot of patient investors."
Mardon said 57 percent of New Zealand homes use the energy saving bulbs, and the Australian market continued to look good, especially after winning Australian consumer magazine Choice's best energy saving light bulbs.
"The next big thing to happen in Australia is the halogen replacement production, and we're close to getting accreditation there," Mardon said.
He told BusinessDesk he was intrigued at the doubling in the share price today, but thought the company had turned the corner.
"It can get very dangerous to just sitting back and watch the share price. The trick is to deliver the results," Mardon said.
Shares last traded at 60 cents, up 76 percent from yesterday's close.