September 11 2019 @ 16:02 by Steven Hugill
A recycling company has hailed the impact of an investment and development programme after posting higher profit.
J&B Recycling says it is enjoying the legacies of a £7.5 million support package that allowed it to expand operations.
The Hartlepool-headquartered company recently completed a four-year investment drive that began in 2014 following the British Growth Fund’s (BGF) support.
The investment helped the firm strengthen operations, with increased capacity and a new processing facility in Hartlepool complemented by a new South Tees site and the acquisition of a waste transfer station in Washington.
According to latest results, the support had a tangible effect on the business, with turnover growing 6.4 per cent to £17 million and gross profit rising 18 per cent to £3.2 million.
Earnings before interest, tax, depreciation and amortisation (EBITDA) were 34 per cent higher at £2.7 million.
Vikki Jackson-Smith, managing director, said the company’s achievements were extremely pleasing, particularly as they were secured in a challenging market environment brought on by low commodity prices, reduced imports to China and UK economic uncertainty.
She said: “We have continued to perform well thanks to a sustained focus over the past four years on material quality.
“We continue to transform as a business by successfully deploying the initial investment we received from BGF and by operating at the highest quality across environmental and health and safety levels.
“We are focused on delivering growth in gross profit and to outperform the waste industry marketplace by operating EBITDA well above the industry average,” added Vikki.
“Our focus is not on increasing turnover, but that of driving EBITDA by better efficiencies, better invested facilities and delivery of the highest quality recycled products.”
According to its results, the business, which employs nearly 200 people across the North East, collected 165,000 tonnes of waste in 2018/2019, a figure Vikki said represents a significant increase on the previous year.