Bin manufacturer Straight has announced “excellent” results for 2010, after taking steps to vertically integrate the business.
In its preliminary results for the year ended 31 December 2010, Straight has reported increased revenue of 8.3% to £30.66m compared with the previous year’s £28.32m. Its underlying operating profit increased by almost a quarter (24.5%) to £1.94m.
Chief executive Jonathan Straight said: “Having embarked on a five-year plan in 2010 with the goal of becoming a vertically integrated, brand-led environmental products and services company with an international footprint, significant steps forward have been made and, as a direct consequence, profitability has improved.
“We now move forward as a strong and vertically integrated manufacturing and distribution business, supplying diverse products to a broad range of markets. Our brand is gaining both strength and value, and we intend to leverage this both organically and through further acquisitions.”
Development work installing further blow-moulding lines at the Powell manufacturing site in Hull, along with expansion of the warehouse and storage space, has now finished. Blow-moulding production began on 7 February and the new warehouse is scheduled to open in April. These changes are expected to allow the group to further consolidate productions and reduce operating costs.
Straight saw sales in its retail business grow by more than 83% in 2010 to £2.17m, following its position as sole supplier to the National Composting Framework. In its trade business, sales of the Steelybin grew by 25%, “consolidating [its] position as the second largest player in the UK”.
However, the report stated that with the current high price of virgin plastic, the company is “maximising” the use of recycled plastic within its products. It said: “This is the key way in which the risk posed by rising polymer prices is mitigated.”