Straight market outlook held up well in 2013

In a trading update, released ahead of its full year results on March 31, the firm said that its earnings before interest, taxes and depreciated and amortisation (EBITDA) for the period were anticipated to be in line with market expectations and has held up well in the second half of the year.

Meanwhile, the Group has also reported the award of two major contracts totalling more than 2 million revenue in early 2014.

This follows the firm last month being reappointed by the Eastern Shires Purchasing Organisation (ESPO) and Central Buying Consortium (CBC) to containers for councils, third sector and public sector bodies under a twoyear framework agreement estimated to be worth 100 million.

The firm has also entered into a 1.4 million deal with Birmingham city council to supply over 300,000 wheeled bin inner caddies between May 2014 and November next year, following the success of a trial in 17,000 households.

And, a contract with Gravesham borough council will see the company supply 820,000 of container products throughout the year, including wheeled bins, and kitchen and kerbside caddies.

In addition, the firm has renewed three of its framework agreements with the Yorkshire Purchasing Organisation (YPO) for a further 12 months. The firm reports that further significant contracts are under negotiation, with the order book building well and in line with internal forecasts.

Foundation

Commenting on todays update, Jonathan Straight, chief executive of the company, said the successful contracts would provide a strong foundation for 2014.

He said: “Our focus remains on profitably growing revenues in all of our diverse markets, and our recent contract wins and future pipeline provide a strong foundation for the year ahead.

These wins highlight our market leading expertise in the provision of stellar recycling products and we look forward to maintaining momentum in the year ahead.”

The optimistic outlook comes after a challenging couple of years for Straight. In September, the firm confirmed a significant improvement in its financial performance for the first half of 2013, after a difficult 2012 (see letsrecycle.com story).

And, in December, Mr Straight spoke to letsrecycle.com about the benefits the company had seen under the Pickles weekly waste fund, as well as progress at its Hull facility, which became operational last year (see letsrecycle.com story).