Simulation software specialist Flomerics hopes an increased focus on assisting in the design of data centres will provide a considerable boost to its fortunes.

Data centres, jam-packed full of racks of servers (computers that hold and process data for other computers or networks), generate ever larger amounts of heat as computers demand ever more from them. A full rack of servers in fact uses 20 to 30 kilowatts of power – generating heat equivalent to two oven on full blast – and the amount of power needed to cool them increases likewise. Flomerics’ technology helps companies design more energy-efficient data centres, cutting down power usage and heat loss.

Drivers for companies to become more energy efficient include reducing their carbon footprint, cost reasons and legislation.

Chief executive Gary Carter says in the last year around 5% of Flomerics’ revenues came from data centre work and that the company has ‘seen a lot more interest’. To capitalise on this hot topic, it is now directly targeting this market in order to be seen as a specialist in this area.

Traditionally focused on helping clients design electronic equipment such as phones, microchips and servers, with customers including Nokia, IBM, Sun Microsystems and Hewlett Packard, Flomerics added German fluid dynamics simulation outfit Nika last year. Upcoming interim figures in mid-September will show a loss as investment to expand Nika into the US has been ‘slower than planned’.

House broker Oriel reckons the full year could see a £0.8m pre-tax profit and 30% earnings growth to 7p. At a three-year low, the shares are cheap – but only for those with a penchant for risk.