Fast growing European waste container producer Helesi joined AIM in November with a £38m valuation, having attracted £11.6m of new money at 116p. The profitable group, among the world’s top six waste bin producers, enjoys good market positions in the UK & Ireland, Greece (where it has 75% of the market) and Southern Italy, as well as Bulgaria, Romania and the Balkans.

Regulation related to recycling, waste treatment and disposal, as well as food storage and transport, drives the market. And Helesi has production plants positioned within or aside growing markets with low levels of competition, as well as fast production times, and container weight and stacking advantages. All of this allows Helesi to win larger contracts at attractive margins.

‘We make our containers lighter, meaning less raw material costs, and our stacking advantages translate into lower transport costs’, says finance director Apostolos Binomakis, who also sees a growing market for Helesi's small waste collection and street cleaning services (Helesi provided waste management services for the Athens Olympics).

Forecasts for 2006 and 2007, predicated only on plastic products, not waste management, suggest €32.6m (£22.1m) sales and pre-tax profits of €4.7m (£3.2m), before €7m (£4.7m) from a top line €42.1m, giving earnings of 22p and 29p.

Forward multiples of 5.5 and 4.2 give this group a bargain basement feel. Strong buy.

Helesi	AIM	£23.11m	70.50p	0.00p
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Other company articles:
Directors’ Dealings by Kathleen Hall			03/11/2008
St Helen’s Capital			02/06/2008
Helesi’s growing Greek trajectory			28/04/2008
Helesi			12/02/2008
Helesi			08/12/2006