Choice Electric ....Whilst Choice’s concentration on supporting and expanding its Dealer network throughout Australia and the near Pacific Islands continued during the year, the promotional work with Public Utilities was also a continuing focus, and as the year progressed, sales through the Queensland power utilities in particular became an increasing revenue market for the company. Whilst the Queensland operation continued to contribute the bulk of sales revenue, operations in Northern NSW and Western Australia, both contributed over $1 million in sales to overall Power Division revenue of $8.5 million. In Northern NSW, Urs Neidhart’s (15 year’s service) work with local dealers resulted in the store’s first recorded $1m turnover. In Western Australia, new employee James Stanton continued the Choice tradition of installations into Government schools by supplying and installing 18 school systems into W.A. The combination of Schools installs, Dealer sales and sales of solar panels and frames to Water Division allowed WA Choice to also achieve a $1 million turnover. These two Divisions will receive even greater support in 2007/08. To begin the new financial year Choice has appointed a new Qld State Manager and a Regional Sales Manager, each being well known & respected industry people who bring added Technical and Sales skills to the team. We have also appointed a new Import/Export Co-ordinator and made internal staff promotions. The Federal Government rebate announcements, coupled with the heightened public awareness of “Climate Change” and “Global Warming”, together with new staff capabilities will make 2007/08 a successful year for the Choice Electric Co - Power Division.
Water Division The 2007 Fiscal Year has been one of restructure and consolidation for Water Division. This, coupled with high levels of service and warranty claims on the Solartech Genius solar hot water system, has negatively impacted on revenue. However, the implementation of tight management controls has managed costs to a minimum resulting in a substantial reduction of the 2005/06 loss. Total divisional revenue decreased to $1.86 million. Solar Energy System’s solar pumping and water purification revenue of $1.06 million showed a slight decline of 11% year-on-year. The majority of this revenue was driven by continued domestic and export sales of Solco’s popular Sun mill family. The slight decline was primarily due to the loss of supply of a bought-in deep-well submersible solar pump. As a replacement, the high-quality Tenesol TSP family of pumps was recently introduced by Solco into the Australian market. Initial sales have been positive and we expect further growth next year as the capability of this European sourced product becomes well known in the market. To counteract increased manufacturing costs, reduce internal overhead, and improve quality, most serial mechanical and electronic manufacturing of the Sun mill pump system has been now been successfully outsourced. This has allowed retail cost rises to be kept to a minimum in an environment of continued pressure on raw material and component costs. The outlook for growth in Solco’s solar pumping sales within Australian and Asia-pacific remains strong. Continued drought conditions, focus on climate change, restricted access to waterways and a possible broadening of solar pumping rebates bodes well for future growth. Sales and interest in Solco solar pumps in Asia this year has led to the appointment of regional dealers and consideration of a stronger presence in sales and possible overseas outsourcing both of which will be reviewed next year. During this year, an experienced pumping sale, service and support team has been created to capture future opportunities. ....
GOE Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
