Energy Mad posts $1.1m loss, thanks investors for patience
BUSINESSDESK: Energy Mad, the energy efficient light-bulb maker that went public in November, posted an annual loss of $1.1 million compared to its initial public offering forecast for a $2.1 million profit, while thanking investors for their capital and patience.
The loss widened to $1.1 million in the 12 months ended March 31, from $100,000 a year earlier, the company said. Sales fell to $6.2 million from $8.6 million a year earlier, to be less than half the $13.6 million IPO estimate.
Since the IPO, the Christchurch-based company has suffered delays at its Chinese factory and cash constraints that postponed fulfilling large Australian Ecobulb orders, prompting it to twice cut its guidance.
Ahead of the IPO, NBR ONLINE questioned the optimism of Energy Mad's prospectus, especially given the market shift to LED bulbs.
Energy Mad is "well positioned for growth in 2013" and thanked shareholders "for providing the financial resource for the company to grow and for their patience", chairman Rick Ramsay said.
Growth in 2013 will be assisted by a recently announced agreement to supply light bulbs to US drug store giant Walgreen and increased sales in the Australian states of New South Wales and Victoria of its ecobulb downlight.
It will soon offer an Ecobulb Dimmable Downlight in Australia.
The company's Direct Installation Business, selling and installing ecobulb downlights in New Zealand homes, remains "on track to become a significant contributor" after quadrupling its sales in the past four months.
The loss before interest, tax, depreciation and amortisation was $729,000, in line with the company's February forecast of a $700,000 loss.
In January it was forecasting an EBITDA profit of $1.1 million.
Shares in the company rose 6% to 53 cents and have almost halved in value from their IPO sale price of $1 apiece.