TIDMSTT

RNS Number : 6332Z

Straight PLC

10 February 2014

 
 Date:              10 February 2014 
 On behalf of:      Straight plc ("Straight" the "Company" or 
                     "the Group") 
 Embargoed until:   0700hrs

Straight plc

Trading Statement and contract awards

   --     2013 Group revenue and EBITDA in line with expectations 
   --     Significant contract awards 
   --     Renewal of three YPO framework agreements

Straight plc, the environmental products and services group and the UK's leading supplier of specialist waste and recycling container solutions, is today providing an update on trading ahead of its preliminary results announcement on 31 March 2014.

The Group is pleased to report that revenue is in line with market expectations. Group EBITDA is also anticipated to be in line with market expectations and has held up well in the second half of the year.

In addition, the Group is pleased to report that 2014 has begun well with the award of two major contracts totaling more than GBP2 million revenue. Both of the contracts have been won under the ESPO framework agreement which was announced 13 January 2014. Further significant contracts are under negotiation and the order book is building well and in line with internal forecasts.

The first major contract is a GBP1.4 million contract with Birmingham City Council will supply over 300,000 of the Straight Wheeled Bin Inner Caddy between May 2014 and November 2015, and will take the total sales of this caddy since it was introduced in 2007 to more than two million units. This contract award follows the success of a trial of 17,000 households where the product proved extremely popular with residents. The Wheeled Bin Inner Caddy is a pioneering design introduced by Straight plc, which provides a dual-stream co-mingled collection with no increase in container footprint beyond that of a standard wheeled bin. In this case paper and card will be collected separately from the other mixed recyclables.

The second major contract is with Gravesham Borough Council which has contracted Straight to supply GBP820,000 of various products in 2014 including the Kitchen Caddy and Kerbside Caddy for food waste, wheeled bins and home delivery services. In addition to these two major contract wins, the Yorkshire Purchasing Organisation (YPO) has renewed three framework agreements for a further 12 months, covering recycling containers, compostable liners and steel bins.

In addition to these two major contract wins, the Yorkshire Purchasing Organisation (YPO) has renewed three framework agreements for a further 12 months, covering recycling containers, compostable liners and steel bins.

Jonathan Straight, Chief Executive of Straight plc commented:

"Our focus remains on profitably growing revenues in all of our diverse markets, and our recent contract wins and future pipeline provide a strong foundation for the year ahead. These wins highlight our market leading expertise in the provision of stellar recycling products and we look forward to maintaining momentum in the year ahead."

For further information, please contact:

 
 Straight plc 
 Jonathan Straight, Chief Executive    0113 245 2244 
 
 Redleaf Polhill 
 Rebecca Sanders-Hewett 
  Jenny Bahr 
  Rachael Brown                        0207 382 4730 
 
 Cenkos Securities 
 Ivonne Cantu (Nomad)                  0207 397 8980 
 Christian Hobart (Sales)

Notes for editors:

About Straight plc

-- Straight plc provides environmental products and services to both the UK market and overseas.

-- The Group is the UK's leading manufacturer and 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

- 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.

-- Almost two thirds 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.

-- Straight plc is a founding member of the Social Stock Exchange, an online portal to promote investment in businesses with social or environmental impacts.

Further information about the company and its products can be found at: http://www.straight.co.uk/

This information is provided by RNS

The company news service from the London Stock Exchange

END

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