Energy Mad keeps bright forecast

Energy-efficient light-bulb manufacturer Energy Mad is sticking with a prospectus forecast of $21.3 million of revenue and $4m profit in the next year after failing to reach its firstyear forecasts by a large margin.

The forecasts will require the startup company to ramp up sales from $6.2m in the year to March 2012, reported yesterday, to the targeted $21.3m for the year to March 2013.

The $6.2m is less than half of the $13.6m revenues Energy Mad forecast in its prospectus last year.

Yesterday the company posted a $1.1m loss, well short of its prospectus forecast of a $3.12m profit, for the March 2012 year, which is its first annual result since listing on the New Zealand Exchange in October last year.

The shares rose 5 cents or 10 per cent to 55c in light trading yesterday. They are well below their $1 IPO (initial public offer) price.

Managing director Chris Mardon said the company aimed to deliver on the $21.3m forecast revenues and $4m net profit.

‘‘We are committed to delivering that. We have some work to do obviously because it’s a big step up. Certainly, securing Walgreen [US drugstore chain] makes a big difference. It’s an initial order [of $1.7m] but there should be other orders throughout the year that are of a comparable size.’’

The agreement to supply the huge Walgreen chain in the United States was a boost and Energy Mad had put efforts into that in the past year.

Mardon said the Energy Mad business was very scalable. It could increase sales but expenses would not increase by the same amount, he said.

Energy Mad raised just over $5m and listed on the New Zealand Stock Exchange in October.

The company’s biggest market for its energy-efficient spiral ecobulbs and downlights is Australia, where the power retailers have to meet energyefficient targets or face hefty penalties. That market and the United States offer the biggest growth prospects. Energy Mad notched up $4.45m sales in Australia in the March 2012 year compared with just over $338,000 in New Zealand.

Energy Mad was developing a newer version of its downlights which were dimmable and more efficient as well as generating less heat, enabling insulation to be placed over the top of them. ‘‘That’s the one we are really excited about,’’ Mardon said.