Straight

Recycling products group Straight has delighted followers with some significantly improved financials for a transformational 2009.

On sales up 11% at £28.3m, the restructured and reinvigorated company, led by charismatic founder and CEO Jonathan Straight, swung from losses of £972,000 to £1.55m of profit, whilst ‘headline’ operating profits surged from £400,000 to £1.6m.

Straight, the number one UK supplier of kerbside recycling containers which also provides water butts and home composters, enjoyed 17% growth in its core Trade Business, which supplies products in bulk to local authorities, utilities and the waste industry. At the same time, the recently troubled Retail Business put in a markedly improved performance and should deliver a 2010 profit.

In the early months of 2010, Straight says it has seen a continued ‘strong pace of order intake' while the recent acquisition of the trade and certain assets of Helesi UK for £1.65m has brought proprietary wheeled bins into the product fold for the first time. Further acquisitions that diversify the product and customer base look likely.

Buoyed by a record order book at the beginning of the year and some £1.6m cash on the balance sheet, Straight has also announced a 0.7p final dividend, which ups its full year payout almost 17% to 3.5p. On forecast earnings of 10.85p, Straight shares, despite having risen from a 52-week low of 42.5p on fast-improving fortunes, are still fairly cheap and therefore worth buying and stashing away.