Quantum leap - Michael West, The Australian 4 March 2004
THE boys from Hall Chadwick - sorry, Quantum Energy - have appointed Macquarie Bank "to assist with the structuring of a distribution and financing package ... for various projects in strategic segments of Quantum's hot water heater and commercial heating markets". An interesting development indeed. Readers will be aware that Macquarie does like to be paid. How can this occur?
In its drive to expand into offshore markets, including Africa, our favourite "global renewable energy company" has - to give it credit - just announced that revenues have more than doubled for the half to $7.3 million.
Despite the actual sales, in getting the market cap up to $1 billion last year, the lads seem to have shown a tad more flair in promoting than running the business.
The loss for the half was $2 million, despite the amortisation expense dropping from $60 million to $226,157.
After backdoor listing early last year Quantum tapped the market three times and now has $1.5 million left in the tin. That won't last long.
Directors attributed the loss to strong competition, R&D costs, higher raw material costs, higher salaries, advertising, provision for debts and costs incurred in relocating the Brisbane and Melbourne offices.
We didn't know they had offices in Melbourne and Brisbane.
But R&D? Well, for a company producing cutting-edge world-first product for global markets, only $400,000 was spent on R&D. Employee benefits doubled, though. And borrowing costs, presumably from related party loans, were up, while the ubiquitous "other expenses" doubled to $2 million.
Might Macquarie be the next broker off the rank to raise a bit of money for the boys?
To close on a positive note, the report showed Quantum was making money in China.
QTM Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
