Date: 10 October 2011 Author: Michael Hobbs Source: The Australian Financial Review --- Page: 16 Australian solar power group CBD Energy has expanded into retail electricityprovision. The company bought Melbourne-based electricity retailer NeighbourhoodEnergy from Alinta Energy for $A24.9 million. CBD Energy CEO Garry McGowan saidthe acquisition will add $A7.5 million to CBD Energy's profit annually
............figure the 'profitability' is a function of the synergies that CBD has found. If this is accurate, it's a bit of a bottler!
In any case, I've been pretty critical of the releases of CBD of late but the latest release suggests that the company has been juggling many balls in order to get its (emerging) strategy into place. Might go someway to explaining the shortfalls in the reporting (Queue background laughter).
All up, I'm going to pull my head in for a while and will sit back and watch Gerry run his course. This story is becoming quite compelling and given his track record of carving out market share in established, oligopoly dominated markets (Impulse), I'm looking forward to the journey.
Good Luck all.
CBD Price at posting:
9.5¢ Sentiment: None Disclosure: Held
