MAD
28/05/2012 08:30
FLLYR
REL: 0830 HRS Energy Mad Limited
FLLYR: MAD: Full year results 2012
?MARKET RELEASE 28 May 2012
Energy Mad Committed to Delivering its FY2013 IPO Projections despite delays
in FY2012
Energy-efficient light bulb manufacturer Energy Mad has released its
inaugural preliminary results for the twelve months ending 31 March 2012.
The operating revenues were $6.2 million for the full year, compared to $8.6
million for the previous year and the $13.6 million Initial Public Offering
(IPO) forecast. This resulted in a full year loss of $1.1 million, compared
to a loss of $0.1 million for the previous year and the $2.1 million profit
IPO forecast.
As previously disclosed to the market, the lower results relative to the 2012
IPO forecasts were due to cash constraints prior to the IPO that delayed
fulfilling large Australian Ecobulb orders, unexpected delays in the
manufacture of Energy Mad's Ecobulb Downlights in China, obtaining
20,000-hour accreditation for its "spiral" Ecobulb in Australia, and the time
taken to secure a substantial customer in a key overseas market.
With the production and accreditation issues resolved, and the recently
secured energy efficient light bulb supply to Walgreen Drug Stores in the
United States, Energy Mad remains committed to delivering its FY2013 IPO
Projections.
Performance Highlights
o A successful $5 million IPO completed in October 2011.
o Net assets increased to $7.4 million, compared to $4.2 million for the
previous year.
o Secured a $2 million Banking Facility with The Hongkong and Shanghai
Banking Corporation.
o Secured $270,000 of Ministry of Science and Innovation Funding to develop a
new Ecobulb Downlight.
o Won the "most innovative business model in international business" award at
the New Zealand International Business Awards.
o Recruitment of key senior staff.
Well Positioned for Growth in FY2013
After the delays experienced in the second half of FY2012, strong progress in
four key initiatives should result in Energy Mad being well positioned for
growth in FY2013.
Firstly, the recent agreement to supply a range of energy efficient light
bulbs to United States drug store giant Walgreen. With Walgreen being the
world's largest drug store chain with 8,200 stores, 247,000 employees and
US$72 billion revenue last year, this will give Energy Mad nation-wide
distribution in the United States.
"Having Walgreen distribution will also provide Energy Mad with the
opportunity to secure and deliver electricity utility projects in the United
States", Managing Director Chris Mardon said.
Secondly, Energy Mad expects its growth in New South Wales Ecobulb Downlight
sales to continue, and to be complemented by strong Victorian sales from
later in 2012.
Thirdly, Energy Mad's Direct Installation business, which sells and installs
Ecobulb Downlights in New Zealand homes that cuts home power bills by up to
25%. This business has had sales quadruple in the last four months, and is on
track to become a significant contributor to Energy Mad's FY2013 results.
Fourthly, downlight growth in Australia and New Zealand will be assisted by
the upcoming release of the Ecobulb Dimmable Downlight. This new downlight
uses only 20% of the electricity of the downlights it replaces, has a very
long life, and will be less expensive than competing products. It is also
fully dimmable and operates at such low temperatures that it can be fully
covered by ceiling insulation.
"With the new Ecobulb Dimmable Downlight a direct replacement for inefficient
halogen and incandescent downlights, and with hundreds of millions of such
downlights in New Zealand, Australia and Europe, this is Energy Mad's most
exciting Ecobulb product yet", Chris Mardon said.
Chairman Rick Ramsay thanked shareholders for providing the financial
resource for the company to grow and for their patience with the delays
Energy Mad experienced in FY2012.
ENDS
For More Information Contact:
Chris Mardon, Managing Director (021) 041 2981
End CA:00223303 For:MAD Type:FLLYR Time:2012-05-28 08:30:31
