Overseas and domestic sales hike boosts Straight
ENVIRONMENTAL products and services group Straight said that profits are expected to be in line with market expectations after continued growth across its divisions.
The Leeds-based firm reported that group turnover for the year ended December 31, 2009 was 11% higher than in 2008 at more than £28m.
It said that the group’s trade business saw continued growth with significant revenue increases being enjoyed in both its core municipal and non-municipal divisions.
The final quarter of 2009 saw the group take orders at unprecedented levels leaving it in a strong position for 2010.
Straight said the increases were at healthy margins as a consequence of its ability to respond quickly to the market by the appropriate investment in new product innovation.
Revenues from non-municipal customers were driven by increased garden and hardware sales to both UK and overseas customers.
These were buoyed by the success of the acquisition of Harcostar in January and the start of outsourced manufacturing in the US to service North American customers during the last quarter.
Around 4% of revenues were generated from overseas customers in 2009. Straight said this figure is expected to increase substantially in 2010.
Straight’s retail business has also performed strongly with the business focusing on strategically important clients and products as well as greatly reducing delivery costs.As a result it has largely eradicated its operating losses.
“The foundation has now been laid, on which the large increases in sales, expected in 2010, can now be profitably delivered,” Straight said in a statement.
“In addition WRAP’s withdrawal from the English home compost bin market in October promptly led to increased revenues for the group during the fourth quarter and this is expected to continue into 2010.”
The group added that the rapid cash payback on the substantial investment in food waste containers made by the group in 2008 had facilitated a second successive year of extensive capital investment in new products for both the group’s municipal and non-municipal customers.
In spite of such high investment cash balances at the end of 2009 remained static at £1.6m.
