MAD
26/11/2015 09:54
HALFYR
PRICE SENSITIVE
REL: 0954 HRS Energy Mad Limited
HALFYR: MAD: Energy Mad Half Year Results
Media Release 26 November 2015
Interim results and October profit
Interim Results
Energy saving light bulb company Energy Mad Limited has released its
unaudited results for the six months ending 30 September 2015.
Energy Mad delivered operating revenues of $2.5 million for the six months
ending 30 September 2015, compared to $4.0 million for the six months ending
30 September 2014.
The operating loss was $0.5 million for the six months ending 30 September
2015, compared to $1.2 million for the six months ending 30 September 2014.
The Australian revenue fell to $1.4 million for the six months ending 30
September 2015, compared to $2.1 million for the six months ending 30
September 2014, due to the Australian Energy Efficiency Schemes transitioning
from energy saving Compact Fluorescent Lamps to LEDs.
The New Zealand "Direct to Consumer" revenue fell to $1.1 million for the six
months ending 30 September 2015, compared to $1.7 million for the six months
ending 30 September 2014. The decline reflects a rebuilding of the sales
force under the new "Direct to Consumer" variable agency sales model which
was introduced in October 2014, which will provide sustainable long run
improvements over previous arrangements.
Energy Mad's Administration and General Expenses fell to $1.1 million for the
six months ending 30 September 2015, compared to $1.6 million for the six
months ending 30 September 2014. This reduction was due to the business
reorganisation that Energy Mad undertook in FY2015.
In September 2015, Energy Mad secured a $0.5 million loan facility from
SuperLife Limited, a major shareholder in Energy Mad.
October 2015 profit
Energy Mad is focused on becoming profitable and then delivering profitable
growth through increased Australian Energy Efficiency Scheme and New Zealand
Direct to Consumer Ecobulb LED sales (further details of these are set out
below).
In October 2015, Energy Mad delivered an unaudited Operating profit (before
depreciation and amortization and net finance costs) of $42,000 on revenues
of $784,000.
An unaudited Operating profit (before depreciation and amortization and net
finance costs) is also expected in November 2015.
These Operating profits are from Energy Mad growing its Australian and New
Zealand sales.
Australian Energy Efficiency Schemes
Energy Mad sells energy saving compact fluorescent and LED Ecobulbs to
customers through State Government energy efficiency schemes in Victoria,
South Australia and the Australian Capital Territory.
Energy Saving certificates are delivered to Australian power companies by
third party suppliers who engage in the sale and installation of energy
saving products that are certified by the scheme administrators.
The most common products sold in these schemes are energy saving light bulbs.
Energy saving light bulbs supplied to these schemes have to be of a high
standard in order to pass the stringent accreditation processes before they
can be sold in these schemes.
All three schemes have been extended in 2015, with increased energy saving
certificate targets set.
The Victorian Energy Efficiency Target Scheme has been extended to 2020, with
the energy saving certificate targets increasing annually from 5.4 million
certificates in 2015 to 6.5 million certificates in 2020.
The South Australian Retailer Energy Efficiency Scheme has set new energy
efficiency targets that almost double the amount of energy required to be
saved in 2017, compared with the energy required to be saved in 2015.
The ACT Energy Efficiency Incentive Scheme has been extended to 2020.
This has resulted in increased potential for Energy Mad in the three schemes,
particularly for Ecobulb LEDs.
Energy Mad has developed a wider range of new Ecobulb LEDs, which target
previously under-utilised opportunities in these schemes due to a lack of
suitably performing and priced LEDs being available.
The success of this approach is so far resulting in growing Ecobulb LED sales
in all three schemes.
Ecobulb LED Direct to Consumer sales model to drive revenue growth
The Ecobulb LED Direct to Consumer sales model involves outsourced "Agency
Holder" sales forces in New Zealand demonstrating Energy Mad's Ecobulb LEDs
to consumers and providing personalised forecasts of energy savings from
replacing their old light bulbs with Ecobulb LEDs.
The Ecobulb LED demonstrations and energy savings forecasts are provided on
an iPad-based sales tool that was developed by Energy Mad.
The current low uptake of LEDs in New Zealand, combined with little
competition in the direct to consumer space, has created a market opportunity
that Energy Mad is well positioned to take advantage of.
Energy Mad is growing its Direct to Consumer Ecobulb LED sales in New Zealand
by assisting its three Agency Holders to scale-up their sales force teams.
This growth has been assisted by the successful introduction of the
"Intelligent" Ecobulb LED Downlight that can be installed and remotely
controlled to customise the light output and colour in any room.
Focus for the 12 months ending 31 March 2016
Energy Mad is focused on delivering profitable growth through increased
Australian Energy Efficiency Scheme and New Zealand Direct to Consumer
Ecobulb LED sales.
Energy Mad would like to thank its team and shareholders for their ongoing
efforts and support during the last four years.
ENDS
For More Information Contact:
Chris Mardon, Managing Director
(021) 041 2981
End CA:00274127 For:MAD Type:HALFYR Time:2015-11-26 09:54:38
