"Elerom" Roman will take out a 2 million lei credit line

The board of Administration of "Elerom" Roman (symbol: ELER, on the Rasdaq tier of the Bucharest Stock Exchange) summoned a general shareholder"s assembly on January 11, 2010, with the main point on the agenda being the approval of a loan of 2 million lei maximum, from the Roman branch of BRD. The loan will be secured by mortgaging an assembly hangar, the auto repair shop and the administrative wing. According to the summons sent to shareholders, the loan contract will be signed for the 2009-2010 period.

The main line of business of "Elerom" Roman, a company which was spun off from the former RENEL-IRE Bacău, is the manufacture of engines, generators and electric transformers. The company has the following shareholder structure: Electro-Center SRL (22.1967%), IMSAT Proiect SA (11.7449%), whereas the remaining shares are split among various shareholders.

The Roman-based company posted a turnover of 8,291,771 lei at the end of Q3 2009. After the first three quarters of the year, the company had an operating profit of 674,584 lei, almost double YOY. In spite of a financial operations loss of 28,049 lei, at the end of September 2009, "Elerom" Roman reported a gross profit of 646,535 lei, as a result of the difference between total revenues of 8,201,764 lei and total expenses of 7,292,075 lei. The company"s net profit stood at 602,181 lei, up 307,745 lei over Q3 2008.

On September 30, "Elerom" Roman had receivables of 2,193,952 lei, and debts of 621,378 lei, without any outstanding social security , state budget or special funds.