TO ALL - LOOKING GOOD ERU16 Jun 2011 20:22
Eruma is headed for profit this year
Since the start of 2011 Eruma has announced contracts worth £1.87m and the nature of them suggests that more could follow. On the lighting side it has won contracts with a hotel group and a private medical facility, but also with a police authority, a school in Essex and two National Health Service facilities. We hear often enough about the need to save money in the public sector and it looks as though the fish are starting to bite.
Originally advertised as an emergency lighting business and thus vaguely synergistic with security blinds, Illuminex is now winning business on the grounds that it can save money. Last year it helped Bristol Airport slash its energy bill for lighting by 45% and cut its annual carbon emissions from 1,350 tonnes to 700 tonnes. With saving money and protecting the environment both at the top of the public sector wish list, it is no surprise to learn that Eruma is negotiating on several other contracts.
Meanwhile, Eruma has struck its biggest ever deal for its security blinds. In a contract worth £1.1m, it will install these on the five hundred windows of a foreign government embassy in London – that works out at £2,200 per window by the way. And, it has also won a £400,000 deal for a financial institution in the City.
Where these customers have led, others could very easily follow. Money thinks that Eruma could turn its first profit in the second half of this year and get there without having to raise any more equity capital. That could transform the stock market’s view of Eruma.
Suddenly, it could be seen as a supplier of very innovative products that are in tune with the times and could sell anywhere in the world. Investor perception is crucial – and it can flip very suddenly.
Why I invest in penny shares
Eruma has a number of qualities I like in a penny share. It’s ignored by City institutions. It produces innovative products. And it holds out the potential for outstanding returns for early investors. It could be a great penny share.
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