Reflecting massive growth in the UK market for recycling boxes and bins, the company announced today that its profits were up from 304,000 to 451,000. And, the company's turnover has almost doubled from 5.19 million in 2002 to 10.18 million in 2003.
Margins, however, were reduced from 5.5% in 2002 to 4.3% in 2003 the company said, as a “results of the sales mix as larger trade contracts were won. There was a greater expenditure on direct marketing activity in conjunction with some of our largest customers”.
Today's preliminary results announcement was the first since Straight raised 1.5 million through its flotation of a 25% stake in the company on the Alternative Investment Market last November (see letsrecycle.com story).
Straight's flotation aimed to give the company a stronger financial base from which to expand “significantly” its activities. The expansion is set to include the development of new products, more efficient systems, an increase in marketing activity and possible acquisitions.
Commenting on the results, chairman James Newman said: “The 2003 performance and higher profile as a result of the flotation will provide an excellent base from which to make further progress in 2004. The company has cash in the bank, continues to be cash generative on its trading operations, and has taken a number of steps towards its business and commercial aims since flotation.”
 James Mellor, Straight's finance director |
The chairman confirmed that James Mellor, the financial controller who joined the firm just before flotation, has been appointed to the board as finance director and company secretary.
Innovations
Chief executive Jonathan Straight, who started the business in 1993, said that since the flotation, new tools have already been commissioned for products in several of Straight's markets. These include a new 44-litre kerbside recycling box and two new home composting bins.
Mr Straight said: “The entire team is dedicated to implementing all of the innovations and changes that will keep the business at the forefront of the recycling container market, whilst making operations more efficient and allowing further expansion.”
The company's order book is currently the highest it has ever been, Mr Straight said, providing a “good base” for further turnover growth in 2004. Straight's chairman said that while no acquisitions had yet been made, “some potential targets have been identified”.
Straight has recently completed a 1.1 million contract to supply kerbside boxes and wheeled bins to Northampton, while other contract wins have included a 1.8 million deal with the London Borough of Bexley for boxes and wheeled bins as well as tracking hardware and software.
The company has also agreed a 900,000 order from WRAP – the Waste and Resources Action Programme – for home composting bins, while this month saw it delivering the last of more than 150,000 kerbside containers for residents in the London Borough of Enfield.
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