Good news boosts Energy Mad

TESS MCCLURE
Last updated 16:06 16/01/2014

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Energy Mad's share price rose 15 per cent today after news that it had topped rankings by an Australian consumer advocate.

The Christchurch company's 15-watt spiral Ecobulb topped the November 2013 CHOICE Australia testing of six energy-saving florescent bulbs.

Energy Mad's share price rose by 4 cents to 30c a share today.

Managing director Chris Mardon said the results of the CHOICE testing would "certainly assist our sales plans in Australia and consolidate Energy Mad's position as a product leader in Australian light bulb replacement programmes".

He said the rise in the share price also followed the announcement of a mailout plan in the United States.

Working with a pilot Walgreens store, Energy Mad worked with electricity company National Grid to contact consumers about the energy-efficient bulbs. The pilot store had sales increase 480-fold.

"To put it in perspective, it would have taken 18 years for the average store to sell what this store sold in two weeks," Mardon said.

Energy Mad intends to roll out the scheme across other US stores, and Mardon was optimistic about the company's growth in the US market.

The company has experienced financial woes since its sharemarket listing in 2011.

At $1 in October 2011, the share price dipped to a low of 21c last November.

The company was censured and fined $30,000 by the New Zealand Markets Disciplinary Tribunal last year for failing to disclose important information to the market as soon as possible. The company had delayed announcing a million-dollar downgrade in full-year earnings by a month.

Energy Mad reported a $2.5 million loss in the six months to last September, compared with a $500,000 loss in the 2012 first half.

Mardon said he was optimistic about the company's's performance in the coming year.

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- Fairfax Media

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