Energy Action Limited Provides Earnings Guidance for the Year Ending June 30, 2021
Energy Action Limited provided earnings guidance for the year ending June 30, 2021. While Energy Action experienced year-on-year sales growth of 25% in the first half, the rate of growth has fallen below expectations in the current half. As a result, revenue has declined during the current financial year to April 2021, down 24% when compared to the prior corresponding period. This was driven by a 49% reduction in average energy prices during the financial year to April 2021 when comparing the prior corresponding period, lower than expected auction volumes, expiration of some long-term contracts and contract deferrals due to the pandemic. As a result, the Company now expects to report an operating loss for FY21 in the range of between $0.5 million and $1 million. This compares to an operating profit of $0.02 million for FY20 and represents a significant decrease from the previous corresponding period.