Recycling fails to light up Mercury

MERCURY Recycling Group, the Trafford Park-based recycler of lighting tubes and street lamps, made a loss in the six months before it switched its interest to iron ore mining.

The business changed its name to Ironveld last month following a reverse takeover which saw it buy iron ore mining rights from South African firm Sylvania Platinum for £13.7m.

It is still operating as a recycler but said the business was “challenging” in the first six months of the year, mainly because the Recolight compliance scheme was putting pressure on revenues.

During the period the business made a pre-tax loss of £118,000, down from a profit of £80,000 last year, on sales of £1m, down 23%.

Mercury described the mining deal as the “most significant development” for the group, although its mining rights have been contested by a South African tribe .

The company said: “The board of directors and management team are extremely excited by this new direction for the enlarged group and believe it will provide a significant opportunity for both our existing and new shareholders.”