29 May 2012

Energy Mad shares jump

7:07 am on 29 May 2012

Shares in Energy Mad have jumped by a tenth after reiterating it still expects to return its books to profit next year, due to rising sales and launching new products.

That is despite the energy efficient lightbulb maker posting losses of $1.1 million in the year to March, in contrast to the $2.1 million profit it forecast before listing in October 2011.

Revenue fell 28% to $6.2 million after delays at its bulb manufacturing plant in China and accreditation hiccups in Australia which delayed the filling of orders.

Energy Mad's stock had lost about half its value since listing, but managing director Chris Mardon says its early problems are now behind it, particularly after securing a deal to supply its bulbs to Walgreen Drug Stores in the United States.

"Having secured Walgreen recently is a big boost for us because the first order alone is $1.7 million revenue and there should be a few of those throughout the year as well. So that was the start we needed."

Mr Mardon said sales should also be helped by the upcoming release of its new dimmable downlight, which has a very long life and uses only 20% percent of the electricity of the bulbs it replaces.

Shares in Energy Mad rose 5 cents to 55 cents each on Monday.