Energy Mad co-founder calling it quits
Departing Energy Mad co-founder Tom Mackenzie is disappointed with the performance of the company in the past few years.
The struggling energy efficient light bulb distributor, based in Christchurch, announced late on Friday that Mackenzie, 41, was leaving to start another business.
Mackenzie’s departure follows that of the chairman Rick Ramsay who resigned last week from the chairmanship and as a director.
Ramsay’s resignation came as the company delivered a $3.2 million loss for the year to March 31 2015, smaller than last year’s loss of $5.7m.
Mackenzie, a mechanical engineer and architect by training, started the business in 2004 at the tender age of 30 with his friend Dr Chris Mardon, Energy Mad’s managing director.
The company seemed to do well in its first few years collecting business awards as it capitalised on the growing support for energy efficiency.
It worked with energy authorities and energy companies to persuade consumers to buy the subsidised energy efficiency compact fluorescent bulbs that Energy Mad was selling.
The company has struggled since it listed on the NZX in October 2011 when it offered shares to investors at $1 apiece. On Friday the shares were trading at 7 cents, 62 per cent lower than a year ago, and representing a huge loss for investors who bought in at $1.
‘‘it’s disappointing how it has performed,’’ Mackenzie said on Monday.
‘‘I hope things will turnaround. They certainly are looking better, that’s for sure.’’
Mackenzie said he had been involved with sourcing product from manufacturers around the world and his position had been part-time and not critical.
Mardon has been the front man for the company and a driver of the business.
‘‘I’m a fairly behind the scenes kind of guy,’’ Mackenzie said.
His departure would not affect his friendship with Mardon, he said.
‘‘It shouldn’t have any impact at all.’’ .
He would remain a director and still had a shareholding of about 16 per cent.
‘‘I think the listing was the right thing to do at the time. It certainly gave us the discipline to disclose information when we had to and made us meet targets and projections.’’
However it was expensive and tough to list a company on the NZX..
Asked if he sold his shares now would he lose money, Mackenzie said it did not work like that. He had put in ‘‘sweat equity’’ when he founded the company with Mardon.
He and Mardon had put money into the company and secured the business against assets they owned as well, he said.
NZX-owned SuperLife, is now the controlling shareholder in Energy Mad. Mackenzie would not disclose what his new business was but said he was very excited about it. ‘‘I’m just wanting to do a lot more work on it which it needs before I start marketing it.’’
Technical development engineer Alireza Milani will take over technical aspects of Mackenzie’s role. Mardon and chief executive Paul Ravlich take on Chinese manufacturing relationships.
Several marketing campaigns are courting hospitality operators and retailers to new developments around the country. In Auckland, the north end of the Devonport Wharf is being refurbished, initially providing 200sqmof hospitality space. JLL is doing the leasing for Auckland Transport and its national retail sales and leasing director, Chris Beasleigh, said the waterfront had been previously underutilised but had high foot traffic. JLL was targeting food and beverage providers. Beasleigh said the refurbishment drew inspiration from Sydney’s Manly Wharf and other transport wharves. CBRE is trying to lure retailers to an extended Papamoa Plaza in Tauranga and to new developments in central Whanganui.
Holding firm
The Reserve Bank of Australia holds a policy meeting on June 2 and is expected to hold steady, having cut rates to an all-time low of 2 per cent just a month ago. A Reuters poll of 24 analysts found all expected a steady outcome this month, though eight still looked for another easing by year end. Investors are also leaning toward a cut as interbank futures imply an 80 per cent probability of a move by Christmas.