STT Straight

TIDMSTT

RNS Number : 3136U

Straight PLC

20 December 2011

   Date:                           20 December 2011 
   On behalf of:               Straight plc ("Straight" or "the Group") 

For immediate release

Straight plc

Trading Update

Straight plc (AIM: STT), the Environmental Products and Services Group, is today providing an update on trading ahead of its 31 December year end.

Sales in the second half of 2011 have been lower than in the same period in 2010 with margins remaining under pressure. Full year sales are expected to be around 9% lower than 2010. As a consequence headline operating profits will not meet market expectations.

Whilst good progress has been made in integrating the factory acquired in 2010, there have been a number of issues that have impeded progress to date. However, these have now been overcome and the enlarged factory is expected to contribute to Group profitability and to better customer service in 2012 and beyond.

The Group enjoys support from its bankers, Lloyds TSB, and has recently renewed its credit facilities for another year.

The Board is also pleased to report that there has also been an upturn in order intake in the fourth quarter of 2011. With a fully functional and enlarged factory, firm foundations are in place for a good start to the coming 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 Polhill 
 Rebecca Sanders-Hewett/Jenny Bahr    0207 566 6720 
 

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

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