Friday May 9, 10:55 AM
Mercury Recycling
LONDON (ShareCast) - Fluorescent light tubes recycler Mercury Recycling (LSE: MRG.L - news) was wanted Friday morning after the company
announced a sharp increase in profits.Pre-tax profit jumped from £84,000 in 2006 to £0.45m in 2007, on turnover that rose from £2.4m to £2.7m. The group's current assets moved past the million pounds mark to £1.05m at the end of 2007 from £0.67m at the end of 2006. In view of the group's strong financial position the board had hoped to recommend a dividend payment this year, but this has not proved possible because of an historical adverse balance in distributable reserves. However, subject to satisfactory results, the board intends to recommend the commencement of dividend payments from next year. The chairman, the Right Honourable Lord Barnett, expressed confidence in the group's future prospects given that, according to its own estimates, around 130m lamps are disposed of each year and only around 30% of these are recycled. "As it is now illegal to landfill lamps and other WEEE products, we can expect a larger throughput for which we have the capacity," Lord Barnett said. Trading in the first three months of 2008 has been in line with management expectations. The group also announced the completion of the acquisition of Envirolite, a waste recycling company, for £1.1m in cash. The acquisition is expected to be earnings enhancing for the current financial year.
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