Even after announcing a drop in profit before tax, Straight, a recycling firm based in Leeds has emphasised that it had put its problems well behind it.
The drop in profits was attributed to the exceptionally wet summer in 2007 that negatively impacted on the sales of water butts as well as other gardening products.
In 2005 the recycling firm registered retail sales of approximately 4.2 million pounds and Straight directors are of the view that 2005 should be the year that should be used as the yardstick for future performance.
During the financial year ended on the 31st of December 2007, the pre-tax profits dropped to six hundred thousand pounds up from two million pounds in 2006. The headline operating profit, prior to taking into account such costs as reorganisation and repayment of intangibles fell to one million pounds up from 1.9 million pounds in 2006.
The financial year ending on the 31st of December 2007 also recorded a decline in revenue with the total revenue being 23.6 million pounds up from 27.8 million pounds in 2006. Consequently the shareholders will take home a smaller cheque this year with the final dividend having been reduced to two pence up from 2.7 pence the year before. The full year dividend has fallen to 3.25 pence up from 3.9 pence in 2006.
The recycling firm has recently embarked on a staff downsizing exercise after outsourcing its backroom activities and it now has twenty five per cent less employees. All its employees have also been transferred to central Leeds.
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