Energy Mad won't deliver $4m profit
Christchurch eco-light bulb maker has posted a disappointing loss of $500,000 for its half year said it will fail to deliver the $4 million profit forecast for the full year.
It today revised its profit for the March 2013 year, saying it could be between $100,000 and $2m instead.
The company has had problems with the design and manufacturing of its new 12V halogen-replacement eco-bulbs and made no sales in Australia in the past six months when it had been banking on $5m.
It also had problems with the 240V eco-bulb downlight - a poor connection of the spiral tube into the downlight fitting resulting in premature failures.
That meant it only made 18 per cent of the sales forecast.
Its Australian customers had lost confidence in that product so the company did not expect to receive the amount of orders it had projected for the rest of the March 2013 year.
In the half year to September, sales rose 47 per cent to $4.8m, but well short of the forecast $9.8m.
Apart from no 12V eco-bulb sales, sales of other products were less than budgeted for and an energy efficiency light project with New Zealand's Energy Efficiency and Conservation Authority did not eventuate while projects in Europe were stalled due to the sluggish state of the economy.
The company said the 2013 March year profit depended on the speed of growth in the next six months. It expected growth in the United States, Australia and New Zealand markets.
Revenues could vary between $13m and $20m for the March 2013 year, below the $21.3m forecast.
The company said Australia still provided a lot of opportunities for Energy Mad due to the growing state government energy efficiency scheme targets in Victoria and New South Wales.
Its new 12V eco-bulb was a lot cheaper than LED lights and did not need an electrician to install. Its main sales growth in Australia would come once there was volume production of the 12V Ecobulb.
The company's spiral eco-bulbs had received accreditation in the Victorian state energy efficiency scheme and those sales were running ahead of budget.
In the United States the company was focusing on expanding the range of products it supplies retail chain Walgrens which had 8200 retail outlets in 50 states.
It expects to build on recent initial projects with United States electricity utilities and supply larger orders to Walgrens.
- Correction: A previous version of this story said Energy Mad had posted a loss of $1.3 million for its half year. This is incorrect. The company will post a loss of $500,000 for its half year.