Eruma Share Discussion Threads

[tday] 27/9/2012 10:40

Yet more losses! The good news is they are only making them at a slower rate than previously.

[empirestate] 21/9/2012 11:49

this lots results are due any time now, the only concern is how they intend to secure working capital, if they find a willing lender it should be a winner.

[cyprussteve] 11/4/2012 13:43

Hi TDay,
If you look back you will find a few postings when the FD retired.
Yes - I can only agree that it could well be construed as a negative, and, personally I was disappointed.
However, it is a fact that people do retire, and, it has also helped in giving the Company an additional cost saving until such time as they make a fresh appointment.
The FD had quite a large shareholding of 8.1%, and, has shown no desire to sell them.
Clearly the Company progress is extremely news driven, and, if they are able to achieve a few significant contract wins, then I think that this, allied to the much improved second half years's results - will begin to reflect in the Company share price
It is fair to say, of course, that if there is no news forthcoming re contract wins, then the opposite would be true.
It is clearly fair to say that if there was no risk, and the Company was performing consistently well, then the share price woud be significantly in excess of the current one.
As always it is a risk vs reward ratio - and personally I believe that the progress the Company is making makes this attractive at the current share price
As always , time will tell.

[tday] 10/4/2012 20:17

Some years ago, I sold my last holding in these, at the then price of 9.22p (equivalent to 184p now)!

Okay, progress of sorts has been made but, the company has now been going for 7 years(?) yet is still losing money. Let's face it, it's a gold mine, except there doean't appear to be any gold nearby!

Maybe things will improve, but it just doesn't seem to be a viable business, viz consistently making money year after year.

Why?

Insufficient turnover with the gross margins they are achieving and overheads far too high.

Meanwhile little or no comment on this bb, re the FD resignig a few months ago, after such a short period of time.

[dropside] 05/4/2012 21:30

Financing working capital is a drain, £92K, if they did another placing for say £500K then that should do it, enough to fund the £3m (agree with tgg) t/o to achieve profit. Once they achieve a demonstrated profit coupled with a good pipeline of orders then there is no reason why a UK bank would turn them down and working capital would become much cheaper.

The placing at a premium/ director buying I take as very encouraging. Excellent news.

[cyprussteve] 05/4/2012 18:26

Totally agreed, Geraldo - no argument at all - and, that is why the market cap is so low, and why the potential opportunity exists.
If all was totally in place with a strong balance sheet, then the market cap would be several multiples of the current one.
It all depends as to whether one feels confident that this will happen or not, I guess.
Personally I do believe that the Company is turning the corner, but, of course, we will not know for sure until results prove it one way or the other.
Ciao
Steve

[thegreatgeraldo] 05/4/2012 18:09

It's simple, they're making progress, but look at the balance sheet (current liabilities v current assets)

[thegreatgeraldo] 05/4/2012 18:09

It's simple, they're making progress, but look at the balance sheet (current liabilities v current assets)

[cyprussteve] 05/4/2012 18:07

Hi Geraldo,
I take your point, but, personally think the scenario you suggest is unlikely - however, all things are possible, and, if this should lead to re-finance at better terms, then I see it as positive - let's not forget the need for finance is now decreasing due to the second half profitability.
I would be interested to know your views on the Company at present - I think there is no harm in being cautious, and, in my view, this is reflected in the current share price - as always it is a risk reward ratio , and, if the Company can maintain their current progress, I think the potential upside is considerable.
As always, time will tell,
Regards
Steve

[thegreatgeraldo] 05/4/2012 17:03

Confident or desperate? ;-#)) Maybe a condition for raising finance?

[cyprussteve] 05/4/2012 16:34

A full years profit, I think, Geraldo - the Director's must be extremely confident.

[thegreatgeraldo] 05/4/2012 15:48

Bit of a shocker for AIM!! Directors converting debt to equity at a premium, whatever next?

[cyprussteve] 05/4/2012 15:42

"Certain creditors of the Company have agreed to convert liabilities totalling £388,507 into ordinary shares in the Company at a conversion price of 11.0 pence per share ('the Conversion')."

A very positive move in my opinion - it makes both a majot reduction in debt to progress profitability in the new financial year, it is heavily supported by Directors, and at a premium to the current share price being issued @ 11p - quite a significant vote of confidence - the Directors are certainly putting their money where their mouth is.
Regards
Steve

[loadsamonay] 02/4/2012 10:46

operational profit - second half of year.

£1.4m order book - 800k at start of year and 600k since

[cyprussteve] 02/4/2012 07:25

Full years results below :

[cyprussteve] 29/3/2012 20:32

Ref today's rise.
Nothing in the Company has changed since the share price was 12p a few months ago – since then the share price has dropped for no apparent reason other than market sentiment and lack of newsflow, and, all today's rise is doing is moving the share price back up to a more realistic level .
If you look back to the 2010 a great deal of revenue was collected in the run in period to the year end – and, it is perfectly possible that the same will have happened last year, especially with some of the large contracts that went through.
If the Company should be profitable in the second half year of 2011 , and beginning to generate positive cashflow, then a recovery share price of 12p would actually be cautious, and, if the Company comes into profit for the full year, then a share price of 20p, and a market cap of £3.7m is eminently achievable, and hardly demanding.
I do believe – ( rightly or wrongly) – that there is every chance that the Company will be in profit for the second half year, and, if I am right, then this would bode well for profitability in the next full year.
As always, time will tell,
Steve

[cyprussteve] 02/3/2012 09:02

I am hoping that this may have bottomed - and, we may have fresh contract wins in the pipeline, as suggested by the previous RNS - Feb 1st - plus I am hoping the second half years results will show a significant improvement when announced - see extract below :
" The Company has made good progress in the second half of its financial year with an order book as at 31 December 2011 (which represents orders received but not yet delivered) approaching £1 million, which is more than double the comparative figure for the previous year. The Company has also completed a significant number of existing contracts during the financial year to 31 December 2011.
The Company's lighting division, Illuminex, has enjoyed a strong second half in 2011 and there are several high value opportunities currently building in its pipeline. The strategic partnership forged with Concept Energy continues to deliver results.
The Security Blinds division has enjoyed its best year since the inception of Eruma. Large contracts have been obtained and fulfilled and again this division's pipeline looks healthy, significantly ahead of the same period last year."

We have seen before how tightly this share is held, and, how quickly it can move on just a few trades.
Just my own views, of course,
Ciao
Steve

[cyprussteve] 09/2/2012 15:50

Undoubtedly this share is high risk - high benefit.
BUT - if the newsflow on new contracts and possible international deals continue to come through, then the Company could easily transfer from loss into profit in the current year - with potentially a significant upside.
Undoubtedly high risk – high benefit – but, the significant Director shareholdings suggest that there is confidence, and, the share is very much below investors radars, and can move very fast on positive news, as the shares are so tightly held.

Just my own views as always,
Steve

[rolo7] 04/2/2012 18:21

slightly different wording on the website

[cyprussteve] 01/2/2012 10:46

Hi geraldo,
That is fair comment I think - and, as you say, one which the Company recognises.
"Working capital has been a significant challenge throughout the year, and with little assistance from the banks will continue to be an important focus for the Company throughout 2012. The board is currently considering working capital funding options to successfully implement the continuing anticipated growth via high value contracts."

[thegreatgeraldo] 01/2/2012 09:59

Struck me as a pretty upbeat update, although success in winning orders brings its own problems - namely financing work in progress, which is acknowledged in today's release.