Mercury holds illuminating talks with customer

MERCURY Recycling Group, the Trafford Park-based recycler of lighting tubes and steel lamps, will tell investors at its AGM later today that it is close to agreeing a new deal with its main customer, Recolight, which should improve pressure on its margins.

When the firm announced lower annual sales of £2.7m last month and an 18% drop in pre-tax profits to £273,000, the company said that it was facing an “unacceptable” downward pressure on pricing which was hampering trading conditions.

The morning, Lord Barnett will tell shareholders that there have been “constructive and positive discussions” with Recolight, which is the operator of the UK’s biggest compliance scheme for the lamp recycling sector.

“The expected outcome seems likely to be a helpful step in the right direction,” he said.

He will also tell shareholders that the firm has now set up Battnett (Battery Network) and was pressing ahead with plans to enter into the battery recycling network by the end of the year.

“I very much hope to be able to announce additional progress in this market soon,” he said.