Environmental products group, Straight, said half year losses doubled after exceptional costs but it views future trading with confidence amid buoyant waste and recycling markets in the UK and overseas.
Straight, which produces home compost kits and recycling containers used by local councils, recorded a loss before tax of £0.24m for the six months ended June 30th from a loss of £0.11m after exceptional costs of £0.40m and finance costs of £0.07m.
The group, which has completed an expansion of its manufacturing site and has reduced factory labour costs by 33%, said group sales increased 11.4% to £16.70m. Underlying profit rose to £0.28m during the period from £0.19m before.
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Chief Executive Jonathan Straight commented: "We have once again maintained our position as market leader, having successfully grown our sales both in the UK and overseas."
"With the market for waste and recycling containers remaining buoyant we are well placed to continue to capitalise on growth both in the UK and overseas. We are confident about the future potential of the business."
Chairman James Newman added: "With significant operating costs removed from the manufacturing operation, the group is now in an excellent position to drive improved profitability and generate cash."
Net debt was reduced from £4.1m at the end of December 2011 to £3.2m at the end of June 2012.
Straight said it remains committed to a policy of paying dividends however, for the remainder of 2012, the reduction of net debt and overheads remains its priority.
It dividend policy will be reviewed in 2013 in light of the expected improvement in performance, it said.
CJ
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