Light bulb shares light up

ALAN WOOD
Last updated 12:25 22/01/2014

Relevant offers

Industries

Boeing raises forecast for new airplane demand Reins on cowboy builders to be tightened Chch jobs to go in Virgin Australia move Labour would axe earthquake authority Kiwi fails to deter manufacturing Economy could be set for slowdown Biz briefs: Tyndall equities appointment Privacy flaw hits YouShop site Need to know: Thursday Banks have bounced back strongly but profits tail off

Energy Mad shares have rocketed after the company announced an online retailing agreement in the United States.

In late-morning trading, the energy-efficient light bulb manufacturer's shares were 11 cents, or more than 32 per cent, higher at 45c.

The shares had generally dropped since listing in October 2011, athough they have recovered much of that ground now.

Energy Mad said today that it had started selling its energy-saving bulbs through Amazon United States.

Three of Energy Mad's spiral compact fluorescent lamps and one reflector LED (light-emitting diode) were now available online, the Christchurch-based company said in a statement released through the NZX.

The products were being sold under Energy Mad's US Ecospiral brand.

Energy Mad plans to boost the range of light bulbs it sells through Amazon.

Managing director Chris Mardon said a key driver for Amazon sales growth would come from securing electricity utility funding to lower the cost of Energy Mad's light bulbs sold on Amazon and to encourage customers to Amazon's site.

"We are in discussion with electricity utilities in the United States about them funding Energy Mad's light bulbs sold on Amazon, and the reception so far is encouraging," he said.

Amazon United States received 105 million unique visitors each month, Energy Mad said.

In 2012, Amazon had online sales of US$61 billion. The electronic commerce and online retail company was experiencing 22 per cent year-on-year growth.

Energy Mad also has a distribution relationship with retail giant Walgreens.

In its unaudited results announced in mid-December, Energy Mad delivered operating half-year revenues of $4 million, down from $4.5m for the September 2012 half-year.

Ad Feedback

- Fairfax Media

Special offers

Featured Promotions

Sponsored Content