Trading Update
July 28 2010 - 1:01AM
UK Regulatory
TIDMSTT
RNS Number : 0325Q
Straight PLC
28 July 2010
Date: 28 July 2010
On behalf of: Straight plc ("Straight" or "the Group")
Embargoed until: 0700hrs
Straight plc
Trading Update
Straight plc (AIM: STT), the Environmental Products and Services Group, is today
providing an update on trading for the six months ended 30 June 2010, ahead of
its interim results announcement on 6 September 2010.
The Board is pleased to report another six months of solid financial performance
and continued strategic development.
Underlying Group profits are expected to be similar to those for the half year
to June 2009 and prospects for the full year are strong. The Group's order book
remains at the same high levels as at the beginning of 2010 and the Board
believes that prospects for the second half of the year are better than in the
second half of 2009.
The Group's Trade Business has continued to perform well, although both profit
and turnover were affected by reduced sales of low margin plastic wheeled bins
prior to the Group acquiring Helesi UK's business and assets at the end of March
2010. However, following this acquisition and based on orders taken for plastic
wheeled bins to date, the Group expects a recovery of these sales towards
previous levels and anticipates that it will be able to achieve higher margins
on these proprietary products going forward.
Performance of the Group's Retail Business has continued to improve and it has
now returned to profit. Sales are significantly higher than in 2009 and have
been buoyed by greatly increased local council sales with 82% of English
districts signing up to the Group's home composting schemes following WRAP's
exit from the market in late 2009.
The Group continues to be cash generative, with cash balances at 30 June 2010 of
GBP1.8m (31 December 2009: GBP1.6m) and with borrowings and deferred
consideration totalling GBP1.9m relating to the Group's entry into proprietary
plastic wheeled bin production.
The Group continues to identify and progress additional opportunities for growth
through vertical integration as well as through product and market expansion.
Looking forward, the outlook for the remainder of the year is positive and the
Board is confident that it will meet market expectations for the full year.
For further information please contact:
+----------------------------------------+----------------------+
| Straight plc | |
+----------------------------------------+----------------------+
| Jim Mellor, Finance Director | 0113 245 2244 |
+----------------------------------------+----------------------+
| | |
+----------------------------------------+----------------------+
| Panmure Gordon | |
+----------------------------------------+----------------------+
| Katherine Roe | 0207 459 3600 |
+----------------------------------------+----------------------+
| | |
+----------------------------------------+----------------------+
| Redleaf Communications | |
+----------------------------------------+----------------------+
| Paul Dulieu / Mike Ward | 0207 566 6709 |
+----------------------------------------+----------------------+
Notes to Editors
* Straight plc is the UK's leading supplier of specialist kerbside recycling
containers as well as a key supplier of a broad range of waste and recycling
container solutions. Founded in 1993 by the current Chief Executive, Jonathan
Straight, the business has since supplied more than 12 million kerbside
recycling boxes to local authorities across the UK, securing its position as the
industry leader.
* In 2005, Straight acquired Blackwall Limited, the UK's largest supplier of
home composters and water butts. Through the Blackwall brand, Straight has
delivered more than 3.5 million compost bins and water butts.
* The business operates through two divisions. The core Trade Business supplying
products in bulk to local authorities, utilities, the waste industry, retailers
and other businesses and the Retail Business supplying a range of proprietary
environmentally friendly consumer products directly to the public, often in
partnership with a local authority or a utility.
* Straight operates a radical business model with all manufacture outsourced on
an international basis. Most production is local to the end market keeping
freight movements and associated emissions to a minimum.
* In February 2009, Straight added to its portfolio with the acquisition of
Harcostar Garden Products, a long established premium brand consisting of water
butts, compost bins, watering cans and accessories. This has gained new
distribution channels for the business in the UK and in Europe.
* In March 2010, Straight acquired the business and certain assets relating to
the UK manufacturing operations of Helesi plc, providing the Group with a
proprietary wheeled bin range for the first time.
* Straight plc has established diverse overseas sales channels and is now
producing and selling water butts in Australia and North America.
* Further information about the company and its products can be found at:
www.straight.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
END
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