Solid performance from Straight

LEEDS-based recycling and environmental services group Straight continues to defy the recession with strong sales pushing operating profits upwards.

The firm reported today that operating profits for the six months ended June 30 increased to £900,000 compared to £100,000 for the same period the year before.

Revenue rose 27% to £17.2m while adjusted earnings per share increased to 6.1p – a significant rise from 0.9p for the first six months 2008.

Jonathan Straight, Straight’s chief executive, said: “This excellent first half provides a solid foundation for the remainder of the year.

“The group is working to maximise opportunities in its core markets and is continuing to broaden its product base which will allow it to leverage its unique business model in new markets.”

Straight has seen strong growth in its trade business following investment in new products including food waste containers – the biggest growth market in the sector – last year.

Earlier this year it also launched a corporate recycling service – Ecosort – which Straight said had been “universally well received”.

Meanwhile, sales through builders’ merchants have grown driven by requirements in the Code for Sustainable Homes, where the provision of water saving and composting facilities achieves high levers of compliance.

Its retail division, which underwent restructuring last year, has returned to profit and is now in a good position to take advantage of WRAP’s withdrawal from the English home compost bin market.

The acquisition of Harcostar Garden Products in January is also delivering benefits with Straight now gaining a foothold in the European garden market.

Local manufacture in Australia has helped maintain its market position while groundwork has been completed for manufacturing to start in the US.