UPDATE: 5pm Shares close down 21.43% | Just three months after raising $5 million in a share float, energy-efficient light-bulb manufacturer Energy Mad has slashed its earnings forecasts by almost 70%.
UPDATE 12.10pm: Energy Mad shares [MAD:NZX] closed at 55c down 21.43% from their 70c opening. The company listed at $1 in October.
Just three months after raising $5 million in a share float, energy-efficient light-bulb manufacturer Energy Mad has slashed its earnings forecasts by almost 70%.
The company blamed recent production delays, higher than expected freight costs, currency revaluations and accreditation delays in Australia for the downgrade.
Instead of its IPO earnings forecast of $3.5 million for the 2012 year, Energy Mad now expects earnings before interest, tax, depreciation, depreciation and amortisation of approximately $1.1 million.
Energy Mad shares [MAD:NZX] last traded at 70c, having shed 30% since listing at $1 each in October. Because of its small size, Energy Mad has no analyst coverage.
Last month the company secured a $2 million banking facility with Hong Kong and Shanghai Banking, which Energy Mad said gave it access to funds to meet large orders.
In a statement today managing director Chris Mardon said significant recent production delays for new Ecobulb Downlights for the Australian market mean a major customer order forecast to be filled before March 2012 will now not be filled until early in the new financial year.
“We were disappointed to be advised so recently of production delays with the new Ecobulb Downlights and have since addressed the underlying issues with the factory. It is important to note that the revenue from this order will be deferred, not lost, as the customer order remains in place.”
Energy Mad holds a 20% stake in its China-based production facility.
Dr Mardon said Energy Mad was had not yet achieved 20,000 hour accreditation for its Ecobulb Spirals in Australia, and this had delayed projected sales to some customers.
“We expect to gain that accreditation by May 2012”, he said.
