Mercury Recycling says that prices for its fluoresent lighting recycling services are coming under pressure from Recolight
Recolight operates the main compliance scheme within the lamp recycling sector. Margins are being squeezed as prices continue to decline.This hit revenues and profit in 2010 and it has made Mercury Recycling look for diversification opportunities.
Lamp recycling volumes have not risen as expected but legislation means that it should eventually happen. The EU wants 85% of lamps recycled by 2016.
The recycling of fluorescent tubes remains the core business but the company has opened a new business called Battnet, which will be involved in the recycling batteries, in order to diversify revenue streams.
Revenues fell from £2.79 million to £2.67 million, while pre-tax profit declined from £333,000 to £273,000. A lower tax charge limited the fall in earnings per share despite the £170,000 raised last September at 10p a share from the main shareholder Westleigh Investments. Net cash was £169,000 at the end of 2010.
Market: AIM
Symbol: MRG
Price: 9p
12-month high/low: 14p/9p
Market cap: £3.22 million
