Straight looks to future after losses double

RECYCLING group Straight says it has put itself on a stronger footing for the future after seeing pre-tax losses double.

The Leeds-based maker of kerbside recycling containers reported a pre-tax loss of £1.6m in the year to December 31, but said it has returned to profitability in 2013.

Revenues were a shade down at £28.8m during the year but the group said that improvements in its manufacturing operation had seen gross margin improve from 15.6% in the first half to 23.9% in the second half of 2012.

Straight’s chief executive Jonathan Straight said: “A great deal has been achieved during the last year in terms of putting the business on a stronger footing for the future.

“Legacy issues have been removed as a result of our work throughout the period and the value of improvements made within our manufacturing facility has been proven effective.”

He added that the company has shown it is able to profitably manufacture its own products and that there is a strong market for its goods and services.

Almost two thirds of the products the group supplies are now produced in Straight’s own factory.

“Considerable work has been done to lay the foundations of recovery, the benefits of which we are now beginning to see, with trading in the current year much improved and the group having returned to profitability,” said Mr Straight.

James Newman, Straight’s chairman said: “The group has maintained its market leading position and is now well placed to deliver a much improved financial performance in 2013 and beyond.”

Straight said that last year’s second half figures were hit by delays in government funding for food waste and other recycling schemes.

The group recently signed a new three year refinancing agreement to extend working capital facilities to fund future growth.