Eastland Group takes a bigger stake in Flick

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GISBORNE-based Eastland Group has boosted its investment in cut-price electricity business Flick Electric Co, raising its shareholding in one of the nation’s fastest-growing electricity retailers from 11 to more than 16 percent.

Eastland Group was already the electricity retailer’s largest shareholder before buying the new $2.2 million stake in the company. Flick has raised a further $5 million from existing shareholders to fund its New Zealand growth plans.

Eastland Group chief executive Matt Todd, who was appointed a director of Flick Energy in May, said it was “exciting” that Eastland Group had increased its commitment to the nation’s “fastest-growing electricity retailer”.

“Aside from the expected commercial return, this investment is helping us to understand changing customer requirements as new technologies alter how electricity consumers interact and behave towards new and existing electricity offerings.”

The latest investment doubles the amount Eastland Group has put into Flick.

Eastland Group has now invested a total of $4.4m in the company, after it paid $2.2m for an initial 11 percent stake in December.

Eastland Group now owns 16.61 percent of Flick and says it plans to buy some shares off existing holders next week, to increase that stake to 18.67 percent.

Selling from the spot marketFlick, which received the New Zealand Hi-Tech Award for Most Innovative Service in May, sells electricity direct from the spot market.

The Electricity Authority’s review of the residential electricity market for 2015 noted the company’s “strong performance”, gaining 6721 customers and increasing its customer base from 410 customers at the start of the year to 7131 by the end of the year.

That gain was the second-highest customer gain nationwide for the year.

Flick chief executive Steve O’Connor said the company was delighted to have the new share offer fully subscribed by existing shareholders.

“We have been very focused on proving there is a mass market appetite for our proposition, and building capability and capacity in the business to support our growth aspirations. Our shareholders are clearly heartened by the progress we’ve made and our strategic positioning.”

Mr O’Connor said Flick had acquired more customers (net) than any other electricity retailer in the first half of 2016, and the new capital would enable Flick to continue its growth trajectory supported by ongoing technology development.

“Fast growing businesses need to be well supported to capitalise on momentum. This raise gives us a solid runway so we can focus all of our energy on meeting our goals and delivering strong value to shareholders.”