Mercury Recycling says the current year will be one of transition as it invests in a new recycling site at Trafford Park to accommodate mounting volumes of fluorescent light tubes and sodium street lights. As Britain’s biggest lighting recycler it is set to reap full benefit from the new Waste Electrical and Electronic Equipment directive, which is now due to take effect in the UK at the start of next year.

  There will be a lot of costs to absorb in 2005 – including investment in an expanded truck fleet – so there is unlikely to be any great advance in profitability. In 2004, profits rose from £71,000 to £176,000 before an amortisation charge of £204,000. The company finished the year with net cash of £170,000. As the current year progresses, however, I would expect to see the stock market start to factor in the new regime and the impact it will have on future years. A market capitalisation of about £9 million leaves everything to play for. If you bought on my last recommendation at 22p in August last year (or even on the previous one in February 2004 at 10.75p), Mercury is worth holding for the long-term. Current price: 27.5p.

Mercury Recycling	AIM	£4.19m	12.50p	0.00p
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Mercury looks forward to 2006			11/05/2006
Tech watch by Elliott Davis			02/11/2004