Pulse Utilities

[Toulouse - Luzern]

Hi Steve
Is the business model valid?
I dont know the answer but it seems to me that the financials, NTA, loss of equity, and options do not look good for Pulse ...

Dominion Post page C4 on Monday 25 July 2011 in the Ask the Experts Forum of the Business section answers a struggling retailer not in the red but heading that way with the advice: "rethink the model if you not making money you're not going to be in the business long"

[minimoke]

Pretty much on the same day we hear Buller Electricity has taken control of Pulse we hear 14 Supply companies are about to spend $200m installing SmartMeters. These meters have Home Network abilities and will be able to communicate with smart home appliances. Buller and Pulse aren't part of that group.

[minimoke]

PLU went looking for another $1.5m but today has only come back with $657,000 @ $0.05 each. Qualified investors are going to be tapped to take up the shortfall. Energy Mad are unlikely to get to their $5m target - theses are tough times for some in the energy sector.

[777]

Off stuff.co.nz


Pulse Utilities to refund $50,000 to customers
HAMISH RUTHERFORD Last updated 10:36 20/12/2011

Independent electricity retailer Pulse Utilities has been ordered to refund $50,000 to customers not given the prompt payment discounts they were owed, after admitting a breach of the Fair Trading Act.

The settlement relates to more than 2500 customers who left the company between late 2009 and this month, but who were not given a prompt payment discount on their final bill.

The Auckland-based company, which is listed on the NZAX, admitted the breach following an investigation by the Commerce Commission.

Pulse Utilities, which trades under the brands Just Energy and Pulse Energy, began life as a smart meter company, but switched a marketing discount electricity to residential customers in 2009.

It has since built up a customer base of more than 29,000, but the growth came with heavy losses and rising bad debts, forcing it into a rescue deal with West Coast lines company Buller Electricity earlier this year.

In a statement, the Commerce Commission said Pulse would now identify and contact the former customers who have a credit against their account and arrange to pay the credit.

''Pulse will also refund some customers who had received their final bill and were not aware they could still receive the prompt payment discount from the previous month.''

In June, Contact Energy agreed to refund customers over $280,000 after admitting a similar breach of the Fair Trading Act.

''Following our investigation we are pleased that Pulse Utilities promptly admitted liability, cooperated with our investigation, and signed a settlement that will see affected customers refunded. The settlement also avoids the need for lengthy and costly court proceedings,'' said Kate Morrison, the commission's competition general manager.

''As this is the second case this year, it is a good reminder to consumers to check their bills carefully to make sure that the charges are accurate and a reminder to companies to ensure that their billing systems work properly,'' Morrison said.

[whirly]

Power retailer NZ's fastest-growing firm
CLAIRE ROGERS
Last updated 20:00 24/10/2012

Auckland electricity retailer Pulse Utilities is the country's fastest growing company, taking top spot in the 2012 Deloitte Fast 50.

Power retailers are again dominant in the Fast 50 Index which ranks businesses, usually start-ups, according to their revenue growth over the past three years and sets the benchmark for high-growth businesses in New Zealand.

Pulse Utilities operates under the Just Energy brand and recorded 2637 per cent revenue growth in three years.

Wellington's PowerKiwi, an independent "green" electricity retailer selling through last year's Fast 50 winner, took out second place with growth of 1916 per cent.

Nelson's McCashin's Brewery came in third with growth of 1836 per cent.

Pulse was founded as a smart metering company but has been selling electricity since 2010. It is listed on the junior, less-regulated NZAX market, and has increased its customer base from 400 to 34,000 in the last few years.

The company recapitalised last year to stave off a cash crisis, bringing in West Coast lines company Buller Electricity as a controlling shareholder. Chief executive Dene Biddlecombe - who Deloitte said had helped turn the company around - announced his resignation last week.

Deloitte partner Stephen Nicholas said Pulse had picked up where last year's winner Powershop left off, challenging the status quo of the electricity industry.

"By focusing on the combination of customer service and a low price in areas of New Zealand that may not seem like a priority for the bigger players in the industry, Pulse has differentiated itself from the pack."

To make the Fast 50, companies had to achieve growth of 154 per cent. Companies in the top 10 all recorded growth of at least 480 per cent.

The group of Fast 50 companies grew the New Zealand economy by $637 million in the past three years and created 1376 jobs, Deloitte said.

Other companies to make the list included jewellery maker Kagi which was named fastest growing exporter, mobile provider 2degrees coming in as the fastest growing technology business, and Wellington's Global Horticulture New Zealand which took out fastest growing primary sector business for the second year running.

The Deloitte Fast 50 Top 10

(Revenue growth over three years)

1. Pulse Utilities (2637 per cent)

2. PowerKiwi (1916 per cent)

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3. McCashin's Brewery 1836 per cent)

4. Night 'n Day Foodstores (952 per cent)

5. Konnect Net (906 per cent)

6. 2degrees Mobile (538 per cent)

7. Powershop NZ (529 per cent)

8. Xero (513.5 per cent)

9. Mediacom (488 per cent)

10. Ecoya (480 per cent)

- © Fairfax NZ News

[Jay]

Pity it isn't in the top ten for share price growth!

[CJ]

Pity it isn't in the top ten for share price growth!Pity it grew at a huge rate by ****ing on its suppliers and needing a bail out by is main shareholder (risking insolvency). Not the sort of thing that should be celebrated in my view.

[Jay]

Agree CJ

I was sort of saying well if they had done things properly and grew by a quarter as much the sp would be a lot better

[whatsup]

Is anyone following Pulse out there, I see $10000.00 worth of shares traded today at a new low ( I might add) a far cry from the SPP @ .44 ! hmmmmm !

[sharer]

Yes, sometimes wonder why yet another bright idea seems to have sunk from sight.
Fortunately not on my own extensive list of disappointing investments.

[iceman]

Interesting news from them today announcing a deal with Grey Power to supply cheap energy ! Grey Power claiming they will get at least 50,000 customers initially as a result of the agreement. Haven't seen much detail on this yet though.

DISCL: Do not hold

[Snow Leopard]

Possible takeover (https://nzx.com/companies/PLE/announcements/269904) :)

Probably the best outcome.

Best Wishes
Paper Tiger

[Jay]

Thanks for the info PT - had not seen it yet

Have to agree.
Now what to spend this massive amount of funds on coming my way soon? :-)

[Grimy]

I received the offer from Buller on Friday. 11 cents per share. I'll wait for the report to come from Pulse, but will likely sell as it's probably a good chance to get out at a reasonable price. There were the original free shares through Tasman, and I took up the offer of more at 15 cents (if memory serves me correctly-can't find my paperwork on it). Probably be down a few bucks overall, but we aren't talking big numbers.

[Jay]

Same here Grimy, have sent of my acceptance-
Big question is what to but with this huge windfall of funds that I had written off years ago, maybe time to update the car to a new Jag - well a matchbox model of one at the most:)

[JAYAY]

It looks like Pulse were trying to build up a customer base by running at a loss for a few years. The day of reckoning always had to come when they would have up their prices to their competitors' levels to make it up.
All the rhetoric about the power companies not being competitive has been false.

[Beagle]

It looks like Pulse were trying to build up a customer base by running at a loss for a few years. The day of reckoning always had to come when they would have up their prices to their competitors' levels to make it up.
All the rhetoric about the power companies not being competitive has been false.

Got any more info, (I'm a customer that's been enjoying these really low prices...and on a fixed deal for 3 years, about half way through that going off memory.