Compliance scheme Valpak has posted a surge in earnings for 2013, the first full year of trading since a management buy-out of March 2012.
In its latest financial statement filed to Companies House, the Stratford-upon-Avon-based company reported pretax profits of £2.1m, up from pretax losses of £35,000 in the nine months to December 2012.
The positive performance was driven by a 56% increase in revenues to £76m. These came from the amounts invoiced to customers for the provision of compliance schemes for packaging waste, producer WEEE and batteries waste and from Valpak’s consultancy activities.
The company said the growth in revenues reflected a 70% increase in PRN prices on the back of higher recycling targets the came into force in January 2013.
“Plastics PRN prices were at levels not seen since 2005 and glass PRN prices at an all-time high,” it said.
Valpak also noted the sale of a material recycling facility in Preston was also a “major contributory factor” to the improved performance.
Valpak, previously a mutual owned by 4,004 members, became a limited company in March 2012 after it was acquired by its directors and became a subsidiary of Valpak Holdings.
Former members received £2.4m (£1.4m initially, and £1m in a deferred consideration), a deal which came under criticism from rivals and former senior figures of the company.