Strong end to 2009 boosts Straight

The AIM-listed firm, which was founded by chief executive Jonathan Straight, said in a trading update that turnover for the year ended December 31 was 11 per cent higher than in 2008, at over 28m.

Profit before tax for 2009 is expected to be in line with market expectations, it added.

The firm said its municipal and non-municipal divisions had seen significant revenue increases, which it put down to responding quickly to to the market by developing new products.

"Revenues from non-municipal customers were driven by increased garden and hardware sales to both UK and overseas customers. These were buoyed by the success of the acquisition of Harcostar in January and also, towards the end of the year, by the commencement of outsourced manufacturing in the United States to service North American customers, following on from the success of this model in Australia."

About four per cent of revenues came from overseas customers last year and Straight expects this to rise in 2010.

In its retail business it has cut delivery costs and focused on "strategically important" clients and products, it said.

"The foundation has now been laid, on which the large increases in sales, expected in 2010, can now be profitably delivered.

"In addition, WRAP's withdrawal from the English home compost bin market in October, promptly led to increased revenues for the Group during the fourth quarter and this is expected to continue into 2010."

Straight said it seen a rapid cash payback on its heavy investment in food waste containers made in 2008 and it has spent again on new products for its municipal and non-municipal customers.

Cash balances at the end of 2009 were static at 1.6m, it added.

Its annual results will be announced on March 23.