Energy Mad finds more costs to cut
Energy efficient lightbulb maker Energy Mad is continuing to slash costs and expects to achieve nearly a million dollars worth of cost savings in its 2014 financial year.
In December last year the company, which was founded in Christchurch, announced it was changing its organisational structure and planned to reduce costs by $750,000.
Today it said it would be able to make another $150,000 of savings in the next financial year.
Energy Mad managing director Chris Mardon said the cost-cutting exercise that started in the December 2012 quarter had made good progress and the first benefits of those measures would emerge towards the end of the 2013 financial year.
Once the cost-cutting process had started the company had found further areas where it could save money, and the company was now targeting a further $150,000 of savings in the next financial year, he said.
Energy Mad reported a $500,000 loss for the half year to September, and expected to clear a profit of about $100,000 for the full year to March.
The company announced last week that chief operations officer Peter Roborgh would leave Energy Mad on March 13, with his role being made redundant.
The lightbulb manufacturer was still waiting for accreditation for the Victoria energy efficiency scheme, which the firm hopes will enable it to capture the $170m market for replacing halogen residential downlights in Victoria and New South Wales with its eco-friendly alternative.
Accreditation should come through "any day now", Mardon said. Asked how sales in the US were progressing he replied that the company would provide an update in a few weeks' time but there was "nothing negative" about the progress of its sales there.
The stock last traded at about 42 cents a share, less than half the $1 price it listed at in October 2011.