According to new results announced for the year ending December 31, 2005, the Leeds-based company increased its turnover to 24.3 million – up 90% on the 12.8 million turnover the year before.
Straight's pre-tax profits more than doubled from the 700,000 achieved in 2004 to 1.5 million up to December 2005.
The increases in performance have been attributed to both organic growth in the original Straight business and last year's 5 million merger with Blackwall, which took place in January 2005 (see letsrecycle.com story).
This year has seen Straight acquiring the garden products division of Titan for 150,000 to further expand the company.
Margins
Chairman James Newman said more efficient production and buying as well as better controls on distribution costs led to an increase in gross profit margins from 15.3% to 16.8%. This was seen particularly in the wheeled bin business.
Mr Newman commented: “Significant further progress has been achieved during 2005, following the acquisition of Blackwall at the beginning of the year. The board believes 2006 will be another year of continued growth as our new markets and new products begin to contribute to the business.”
The latest financial results from Straight also reported “excellent” sales and product opportunities for the company's materials handling division through its alliance with US partner Rehrig Pacific. Mr Newman said: “This division is expected to grow significantly in 2006.”
Future
Looking to the future, the chairman said government recycling targets would be “hard to achieve” and that Straight would be “well placed to support this effort”.
Straight has been working with the Waste and Resources Action Programme to provide home composting bins for householders across the country, with deliveries “at record levels”, while further compost bin contracts are still being awarded.
New contracts were also signed with Manchester city council for wheeled bins, Somerset county council for kitchen caddies and kerbside baskets and from Cleanaway for recycling boxes, the company reported.
New Straight products that have recently been developed include 5-litre kitchen caddies and a new kerbside box divider. And, development work on a “Recycle Station” and a “Wheeled Bin Caddy” has merited the ordering of new tooling, and these new products are expected to be available later in 2006.
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