Straight PLC Trading Statement (5438K)
August 22 2012 - 3:30AM
UK Regulatory
TIDMSTT
RNS Number : 5438K
Straight PLC
22 August 2012
Date: 22 August 2012
On behalf Straight plc ("Straight" or "the Group")
of:
For immediate release
Straight plc
Trading Statement
Straight Plc (AIM: STT), the environmental products and services
group is today providing an update on trading ahead of its interim
results announcement on Thursday 27 September 2012.
Group sales increased in the first half of 2012 by approximately
11% to GBP16.7m (2011: GBP15.0m). This increase in sales was
assisted by strong performance from the garden and hardware sector.
The Group is now trading profitably and further cost reductions and
product innovations are expected to improve this position as the
year progresses. Net debt at the end of June stood at GBP3.2m, a
reduction from GBP4.1m at the end of December 2011.
The Group made significant further reductions in its cost base
at the end of the second quarter of 2012 and during July in order
to align the manufacturing capability of the factory it acquired in
2010 with core sales demand. The benefit of these actions, which
included a number of redundancies, will only come through in the
second half of the year. On this basis, whilst the Group has
returned to underlying profitability in recent months, the Board
believes that full year results are likely to be below current
market expectations.
For further information please contact:
Straight plc
James Newman, Chairman 07850 672 727
Jonathan Straight, Chief Executive 0113 245 2244
Cenkos Securities
Ivonne Cantu (Nomad)
Christian Hobart (Sales) 0207 397 8980
Redleaf Polhill
Rebecca Sanders-Hewett 0207 566 6720
Jenny Bahr straight@redleafpolhill.com
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 Dyro Holdings, a
key supplier of injection moulded products to the group. The Dyro
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.
-- Three quarters of the products supplied are produced in
Straight's own factory which has been expanded.
-- 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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