Trading Update (3669L)
July 29 2011 - 5:00AM
UK Regulatory
TIDMSTT
RNS Number : 3669L
Straight PLC
29 July 2011
Date: 29 July 2011
On behalf of: Straight plc ("Straight" or "the Group")
Embargoed until: 1100hrs
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 2011 ahead of its interim results announcement on 27
September 2011.
Group sales increased in the first half of 2011 by 14% to
approximately GBP15.0m (2010 H1: GBP13.2m). These have been
assisted by contributions from the acquisitions made in 2010 and
also by a significant increase in sales in the Retail Business.
Despite this increase, overall sales have fallen short of
management expectations.
As noted in the AGM statement of 27 May, polymer prices rose
rapidly to unprecedented levels during the first part of 2011,
peaking in May. These rises have impacted the profitability of
certain contracts accepted prior to the rise in costs. This has
also affected the performance of the recently acquired Powell
Plastics operation.
Consequently, as advised in the AGM Statement, profitability for
the first half of 2011 will be below management expectations. The
Group expects to report a small headline operating profit for the
first half, which after reorganisation costs and interest, will
result in a loss before tax of approximately GBP0.1m.
Following a programme of remedial actions that is already
substantially under way, the Group expects to return to
profitability during the second half of the year.
For further information please contact:
Straight plc
Jonathan Straight/Jim Mellor 0113 245 2244
Cenkos Securities
Ivonne Cantu/Christian Hobart 0207 397 8980
Redleaf Communications
Rebecca Sanders-Hewett/Jenny Bahr 0207 566 6700
Notes to Editors
-- Straight plc is the UK's leading supplier of specialist
kerbside recycling containers as well as being 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 25 million kerbside boxes,
baskets and caddies to local authorities across the UK, securing
its position as the industry leader.
-- 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.
-- In 2010 two acquisitions changed the business model, which
previously relied on outsourced manufacture. In March 2010 Straight
acquired the business and assets of the UK business of Helesi plc
giving it a proprietary position in the wheeled bin market. This
was followed in August 2010 by the acquisition of Powell Plastics,
a key supplier of injection moulded products to the group. The
Powell factory, in Hull, has since been developed to include a blow
moulding capability.
-- 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 gained new distribution channels for the
business in the UK and in Europe.
-- 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 majority of the products the Group supplies are now
produced in Straight's own factory.
-- Straight plc has established diverse overseas sales channels
for its products, some of which are manufactured locally to their
markets in North America and in Australia. Other markets are
serviced from UK production.
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
TSTGCGDRLUDBGBC
Straight Plc (LSE:STT)
Historical Stock Chart
From Jun 2024 to Jul 2024
Straight Plc (LSE:STT)
Historical Stock Chart
From Jul 2023 to Jul 2024