Energy Mad : News Release Energy Mad Limited FY2016 Full Year Results

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Media Release 26 May 2016

Energy Mad Now Trading Profitably due to Australian Refocus

Energy saving light bulb company Energy Mad has released its preliminary results for the 12 months ending 31 March 2016 (FY2016).

In FY2016, Energy Mad grew operating revenues to $8.4 million, compared to $5.9 million for the 12 months ending 31 March 2015 (FY2015), which was a 42% increase in revenue. The operating loss reduced to $0.9 million for FY2016, compared to $2.9 million for FY2015.

The Australian revenue was $6.2 million for FY2016, compared to $3.4 million for FY2015.

The Australian revenue grew five-fold from $0.6 million in the first quarter of FY2016 to $2.8 million for the last quarter ending 31 March 2016. Quarter two FY2016 Australian revenue was $0.8 million and quarter three FY2016 Australian revenue was $2.0 million.

This Australian revenue growth came from new Ecobulb LEDs developed to target previously under-utilised opportunities in Australian State Government energy efficiency schemes, due to a lack of suitably performing and priced LEDs being available.

New Zealand "Direct to Consumer" revenue was $2.2 million for FY2016, compared to $2.2 million for FY2015.

Energy Mad's Administration and General Expenses fell to $2.5 million for FY2016, compared to $2.9 million for FY2015.

Energy Mad's Selling and Distribution Expenses fell to $1.2 million for FY2016 compared to $1.7 million for FY2015, despite the 42% increase in revenue over FY2016.

The loss for FY2016 reduced to $1.3 million, compared to $3.2 million for FY2015, which was a 60% improvement over the previous year.

In September 2015, Energy Mad secured a $0.5 million loan facility from SuperLife Limited, a major shareholder and supporter of Energy Mad.

$0.55 Million Trading Profit for the Last 3 Months

Over the three-month period from February to April 2016, Energy Mad delivered an unaudited operating profit (before non-core operating items of $210k, foreign exchange gain of $137k and depreciation and amortization of $75k) totalling $0.55 million.

April's unaudited revenue was $1.0 million and operating profit was $0.25 million.

This three-month operating profit was achieved on $3.8 million operating revenues, of which Australian sales contributed $3.2 million in operating revenues.

Energy Mad expects the continuation of this operating profit through the FY2017 financial year.

This result represents the beginning of a turnaround for the company, a positive move for NZX's majority investor SuperLife and other shareholders.

Australian Energy Efficiency Schemes

Energy Mad sells energy saving LED and compact fluorescent Ecobulbs to customers through State Government energy efficiency schemes in Victoria, South Australia and the Australian Capital Territory.

Energy Saving certificates are delivered to Australian power companies by third party suppliers who engage in the sale and installation of energy saving products that are certified by the scheme administrators.

All three schemes were extended in 2015, with increased energy saving certificate targets set.

The Victorian Energy Efficiency Target Scheme has been extended to 2020, with the energy saving certificate targets increasing annually from 5.4 million certificates in 2015 to 6.5 million certificates in 2020.

The South Australian Retailer Energy Efficiency Scheme has set new energy efficiency targets that almost double the amount of energy required to be saved in 2017, compared with the energy required to be saved in 2015.

The ACT Energy Efficiency Incentive Scheme has been extended to 2020.

This has resulted in increased potential for Energy Mad in the three schemes, particularly for Ecobulb LEDs.

Energy Mad has developed a wider range of new Ecobulb LEDs, which target previously under-utilised opportunities in these schemes due to a lack of suitably performing and priced LEDs being available.

Transfer of New Zealand business

As detailed in the announcement made to the market on 12 May 2016, Energy Mad has tightened its focus to servicing the Australian and New Zealand Business to Business Markets, and is transferring its Direct to Consumer business in New Zealand to My Eco Limited.

Energy Mad People

Energy Mad has seen a number of senior people changes in FY2016.

In June 2015, Energy Mad co-founder and Technical Director Tom Mackenzie stepped down from the board and left Energy Mad to pursue a new business opportunity after eleven years' service with Energy Mad.

In July 2015, Rick Ramsay stepped down as Chairman of Energy Mad after four years' service with Energy Mad.

In April 2016, CEO/CFO Paul Ravlich departed Energy Mad having materially assisted with the turnaround in Energy Mad to pursue other opportunities and challenges after four and a half years' service with Energy Mad.

Energy Mad thanks Tom, Rick and Paul for their service over the years, and wishes them all the best for their future endeavors.

Rick's position as Chairman was filled by Dr Brent Wheeler, an experienced Chairman and Director in New Zealand and Asia.

In March 2016, Energy Mad co-founder and Managing Director Dr Chris Mardon stepped down from the Energy Mad board to focus on the Australian opportunity.

His place on the Energy Mad board was filled by David Jarman, an experienced Christchurch based Executive and Director.

Thank You

Energy Mad would like to take this opportunity to thank its team and shareholders for their ongoing efforts and support.

In particular, Energy Mad thanks NZX Limited, SuperLife Limited and Michael Chamberlain for their substantial financial support over the past few years, without which Energy Mad would not have been able to turn around its business and get to the position where it is now trading profitably.

ENDS

For More Information Contact:

Chris Mardon [phone]