Eruma Share Discussion Threads

[chrisgail] 11/11/2012 15:30

They seem to be running up CCJ's with Northampton CCBC (4) to the tune of £15,000 This is not a lot of money so sadly it shows the trouble they appear to be in, a great pity it seemed they were so close to it coming good.

DYOR

[tday] 09/11/2012 13:31

Looking at the group accounts at 30 June, it's highly likely that Eruma is insolvent (ie, unable to pay its debts, as and when they fall due) which, I believe, is illegal.

If my knowledge of Company Law is correct, and I accept that it might not be, one consequence is that the directors could become liable for the company's debts.

I would hazard a guess that there are quite a few creditors, who wouldn't think twice about reporting Eruma's situation, to the financial regulatory authorities.

[cyprussteve] 08/11/2012 15:39

It is either the last rites, or, a good buying opportunity – but clearly the placee has got cold feet.
Just depends now on how long they can maintain cashflow – will the creditors pull the plug, or will the long awaited big contract come through ?
Hmmm

[34simon] 08/11/2012 15:34

Not surprised, this is Aim, he should have paid 3p not 9.5p !

[tday] 26/10/2012 22:15

holkham, I am more than surprised that Wayne Money has survived as CEO for seven loss making years. Surely it can't be long before Eruma's backers, decide that Wayne has to go - his record is appalling.

[loadsamonay] 13/10/2012 18:36

I am quite hopeful about eru. It really could be a wealth changer for investors if it comes good. The issues are well documented and cash flow among them, but hopefully things will turn in their favour soon. A few big contracts and the funds to start off the work on them (which im hoping we now have in place) could see things move. Of course there are risks, but if there weren't risks it wouldn't be priced cheaply. I topped up this week, and if it drifts back down to say 5p will add more.

[holkham] 08/10/2012 19:56

TDay

luv your posts

It appears loads have already been well and truly stuffed - employees and creditors

As long as the top brass get what they want 'whats the problem'

Does Matt Allright know this outfit!!

[tday] 08/10/2012 18:29

From the interim figures announced the other week, it appears that to break even, Eruma needs annual turnover of circa £3m.

In the first six months the company generated sales of £716,000, thus to break even in 2012, the second half of the year will require sales (not just orders) of £2.3m.

Okay the Illuminex contract of £350,000 should hopefully be completed by the year end, but that still leaves just under £2m of sales to find, less any other orders - presumably all small ones - received since 30 June.

If there is to be a contract announcement soon, it will have to be a mega one (or two) to hit the magical £3m turnover figure. Failing that 2012 will be another loss making year.

Of course there was over £1m of creditors at 30 June. How is this sizeable sum going to be repaid? The recent placing of £300,000 should help, but how will any new contracts be funded?

Even supposing the recent placing is solely for financing, as yet to be announced contracts, the working capital requirement of anywhere between £800,000 and £1,950,000 will dwarf what has just been raised.

[bantam175] 08/10/2012 13:00

Buyout on the cards maybe?

[loadsamonay] 08/10/2012 10:34

Trading seems quite lively today. Never seen so many trades as recent days. It used to be just a couple of trades per week.

[loadsamonay] 08/10/2012 00:15

we will see in due course. I think management are doing a great job in the face of total lack of support from the banks in turning the business around. It just needs a little bit of a lift from a run of contracts, or a couple of big contracts they could be off on an upward trajectory.

[tday] 06/10/2012 15:26

The problem is certain shareholders, have lobbed in so much money that if the company fails, they stand to lose significant amounts. Many are sitting on losses of 50-90% of their investment.

The two products - security blinds and lighting - might be wonderful, but are they 'must have' items, that sell in sufficient quantities to make money. After seven years of striving, surely long enough to find out, the answer seems to be no.

What has changed fundamentally, that makes these shareholders believe that the company will become profitable in the short term, because another £300,000 of cash won't last that long, if the business keeps making losses. Then there are the company's existing creditors, many probably long overdue for settlement, who need paying. From where is the money coming to pay them, other than from the recent placing?

[loadsamonay] 05/10/2012 15:03

I agree Steve. Its inconceivable for me that they would have raised so much if they didn't think there were good prospects.

[james t kirk] 05/10/2012 13:04

The last through fund raisings at PAA have been at 35p and yet the share still dwindles at under 15p - its a crazy world this share market..

[cyprussteve] 05/10/2012 12:07

WOW is all I can say – I am both astonished and delighted that they managed to get it away at that premium – why oh why would investors pay so much - surely ONLY if they absolutely knew there were big contracts literally virtually secured, and this funding will enable ERU to proceed, and also reduce bank indebtedness.

[loadsamonay] 05/10/2012 11:52

me too. wish i had the confidence to top up yesterday. I managed to get a few more today actually

[empirestate] 05/10/2012 10:55

and there was me sitting on my hands

[tday] 04/10/2012 16:16

Share price approaching its all time low. Obviously not a lot of optimism about.

As you say, time will tell.

[loadsamonay] 04/10/2012 09:43

FWIW I disagree. I don't think they will go bust. Time will tell

[cyprussteve] 03/10/2012 22:41

FWIW - I think the most likely outcome is for ERU to be bought out at a bargain price by a larger Company, who can wipe out their debts, and also offset them for tax purposes against their own P & L accounts.
This would then enable the "new" Company to move forward - ( I do believe it has first class products) - and, IF I am correct, it would take away the funding and bank debt problems / costs - and would enable the Company to fulfil any contracts that may be pending.
Pure supposition - I accept that - but, I do believe it is a possibility - IF I am right , then whether this will be good or bad news for shareholders all depends on the terms of any deal that may be struck.
I really know not, but, I think the above scenario is a definite possibility - if not, then, yes, I agree they will go bust.

[tday] 03/10/2012 16:39

Loadsamonay, You say: "They are defo making progress in the right direction".

Please explain, since the company has never made a profit, and seems unlikely to do so in the near future. The market - right more often than not - reckons it's going to go bust, witness the share price having declined from circa 200p to 5p today.

You say all Eruma needs is a big contract. The trouble is, it has needed that - and more - for the last seven years, so far without luck.

Due to a lack of profitability, working capital is and always has been one of their big problems. It appears that it isn't getting any easier - hardly surprising - to find such UK funding, hence the need to look overseas. A hint of desperation?

In addition the sales force numbers have declined and there appears to be little cash for marketing. Staff morale is apparently pretty low.

I know that some of the original shareholders, have lobbed in more cash for additional shares (and to finance specific contracts by way of loans), but they are now sitting on serious losses. At some point, they are going to decide that enough is enough.

I would be surprised if Eruma, is still around in 12 months time. AIMHO.

[loadsamonay] 27/9/2012 12:42

I'm ok with this actually. They are defo making progress in the right direction. As ever, it only needs a couple of mega orders and they are off. Of course they need to find the funds to start work on orders, but eventually this hard work will pay off, and a shareholding at todays share price could be great investment. They just need a bit of a break/luck, a few things to click into place, and it could come along anytime. Of course the investment isn't without risk, so its risk and reward. I'm content though so far. You get companies that raise lots of funds to catapault themselves upwards, but i do believe that over time the softly softly approach is a better one, as it avoids dilution and brokers. I've had shares in Goldplat plc for many years and a slow and steady approach there is finally about to pay off and maybe even pay dividends literally.