Energy Mad flags $1.4 million of impairment

Chris Mardon of Energy Mad
Energy Mad 12-month price history (NZX.com)

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

Energy Mad [NZX: MAD], the energy efficient light bulb marketer, has flagged a $1.4 million impairment and lowered the value of research and development intangible assets to $400,000 ahead of announcing full-year earnings next week.

The impairment recognised a reduced value for R&D for its older compact fluorescent lamps which have now been superseded by its Ecobulb LED range, the Christchurch-based company said in a statement. It took an end of year stock provision of $200,000 on the older range. Last year Energy Mad reported a $2.5 million loss, including writing off a $2 million tax benefit for the six months ended September, as it struggled to secure a foothold in the Australian and US markets.

Shares in the New Zealand Alternative Exchange-listed company were unchanged at 36 cents and have gained 50 percent year-to-date. The share price surged in January to reach 69 cents after the light bulb maker announced deals with online retailer Amazon and retail chain Walgreens to sell its bulbs in the US market before falling on issues of stock availability.

Energy Mad has suffered a series of setbacks since its IPO in 2011, consistently missing prospectus forecasts. In October last year the company was fined $30,000 by the NZX for not issuing a profit warning soon enough.

(BusinessDesk)


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

NZ Market Snapshot

Forex

Sym Price Change
USD 0.6384 -0.0074 -1.15%
AUD 0.8951 -0.0087 -0.96%
EUR 0.5663 -0.0100 -1.74%
GBP 0.4145 -0.0045 -1.07%
HKD 4.9476 -0.0580 -1.16%
JPY 77.0460 -1.2660 -1.62%

Commods

Commodity Price Change Time
Gold Index 1134.7 1.380 2015-08-31T00:
Oil Brent 54.1 4.100 2015-08-31T00:
Oil Nymex 49.2 3.980 2015-08-31T00:
Silver Index 14.6 0.040 2015-08-31T00:

Indices

Symbol Open High Last %
NZX 50 5656.2 5664.2 5656.2 -0.02%
NASDAQ 4798.7 4824.6 4828.3 -1.07%
DAX 10201.0 10273.5 10298.5 -0.38%
DJI 16632.0 16632.0 16643.0 -0.69%
FTSE 6192.0 6247.9 6192.0 0.90%
HKSE 21692.8 21692.8 21670.6 -0.64%
NI225 18763.7 18777.5 18890.5 -2.12%