Eruma plc

Eruma specialises in counter terrrorism, intruder prevention products and intelligent lighting. Over recent months it has enjoyed increasing levels of new business, indeed the latest win is a follow on contract with an un-named policy authority which takes the total with this client to £495,355. A deal signed with the consultancy Concept Energy Sol... utions last year has helped Eruma secure the latest business win. In the six months to June, the AIM company reported a 128 per cent surge in orders to just over £2 million - largely driven by significant new contracts. Due to timing issues sales dipped 16 per cent to £416,000 as losses narrowed to £365,000 (2010: £451,000). One major challenge, which is carefully monitored, is the management of working capital, this is due to the nature of the payment terms it receives on larger contracts. We highlighted the attractions of Eruma earlier this year in the Growth Company Investor 'Pick of AIM' column in March, then again at 8.75p in May following the £1.1 million contract win for a London based embassy. The minnow is clearly gaining good momentum, as clients sign up for its energy saving products. Its shares are also starting to gain traction - up 0.875p this morning to a near year high of 11.5p. They remain speculative, but a punt could reward risk hunters.Read More