Straight Plc Share Discussion Threads

[philjeans] 05/3/2013 12:43

Yes - but I'm keen on high risk/high reward situations. I have a large and very well diversified portfolio and a few coming good easily covers the very few that go bust!

Take a look at IGE for example - micro cap but have amazing products; no debt and just broken into profit. They were floated at 30p - now 1.5p!

DYOR - I hold.

[topvest] 05/3/2013 12:34

I'm still watching - very quiet on a trading update. Personally, I'm wary of getting back in until I see some audited results. Must be a risk of a placing now that the contract awards and deferred consideration has been agreed. They must still be close to being insolvent, so I'm not prepared to take the risk after having sold out much higher.

[the big fella] 05/3/2013 12:26

Hopefully this mornings purchases have cleared any stock about. A bit of positive coverage and these could be off and running.

[the big fella] 05/3/2013 12:20

Phil

Yes, I absolutely agree and it was remiss of me not to say so in my post. If this hadn't been resolved I would not have been looking!!!

[philjeans] 05/3/2013 12:11

Hi BF; good summary and I hold as well.

The catalyst for a big lift in the share price however will be today's RNS. The bank will be heartily relieved that this deal has finally been agreed and the co can move forward without the threat of the £2M liability hanging over it.

It gives them time to pay from cashflow and allows management to concentrate on production and sales.

Priced to go bust still but now bags of upside.

[the big fella] 05/3/2013 11:02

Like many, I would suggest, I haven't looked at STT for a long time. Today's announcement prompted me to take another look. My views on the Company are that Management have struggled over the years to deliver consistently. At present we are just bouncing around the historical lows. The market cap is a touch over 3 mil. Debt is also a touch over 3 mil (although at the last interims this had been reduced from over 4mil in 6 months – so a significant reduction in a short space of time).
There is a fair bit of goodwill on the balance sheet from acquisitions over the years, and writedowns may effect headline earning for a while.
But the cashflow at the interims was much more positive - to the tune of 1.8 mil. And this is what interests me, as I can only see this improving following the rationalisation to the manufacturing process, which is largely complete now. This will take some 33% out of the manufacturing cost, therefore cashflow (and profit) should show real improvement in the second half (will be reported in May) and into 2013.
This is further boosted by some big name contracts over the last 12 months – Dumfries, Serco (Canterbury), Severn Trent, May Gurney and Dorset waste. It is hard to say what impact these will have on the 2013 numbers, but bearing mind at the interims they were trading profitably, these can only be positive. On a mkt cap of just over 3 mil, with the manufacturing cost reductions any increase in throughput will have a dramatic increase on the bottom line.
To temper this I would say this is not a company to place great faith in, but as a medium term investment I can see these recovering to £1 at least. In 2010 they made 1.5 mil profit. There is no reason why they can't do that and more in 2013 / 2014. In which case they won't be 30p.
I have picked up a couple of lots this morning.

[philjeans] 05/3/2013 08:04

Straight PLC Agreement with vendors of Dyro Holdings
Print
Alert
TIDMSTT

RNS Number : 1961Z

Straight Plc

05 March 2013


Date: 05 March 2013
On behalf of: Straight plc ("Straight" the "Company" or
"the Group")
Embargoed until: 0700hrs

Straight plc

Agreement with vendors of Dyro Holdings

Straight plc, the(AIM: STT), the environmental products and services group, is pleased to announce that further to its acquisition of Dyro Holdings in August 2010 for GBP2.9m, agreement has been reached with its vendors under the warranties and indemnities provided in the Sale and Purchase Agreement resulting in a revised purchase price of GBP2.42m.

An initial cash payment for Dyro Holdings of GBP0.97m was made in 2010, with further payments due August 2011 and August 2012, subject to the vendors of Dyro Holdings closing a pension scheme. The payment schedule was deferred due to delays in this process. Under the revised agreement, a balance of GBP1.45m is to be paid in monthly instalments over a period of five years commencing March 2013.

The payments to be made will start at GBP250,000 per annum for the first two years of the agreement, increasing to GBP300,000 in years three and four with GBP350,000 due in the final year of the term. The revised terms of the agreement will not have an impact on the Company's net assets.

Jonathan Straight, Chief Executive at Straight plc said:

"We are delighted to have reached an amicable agreement with the vendors of Dyro Holdings Limited concerning both our warranty claims and the timing of the further payments due.."

End

For further information: please contact:


Straight plc
Jo

[philjeans] 05/3/2013 07:58

Excellent news today about a deal for the deferred settlement - very advantageous terms and time to settle from cash flow.

Should put a rocket under the s/p.

Time to BUY!

[charo] 26/2/2013 12:08

As the ides of march approach beware of bad news,trading is not expected to be good and margins will be under pressure.Trade creditors are pressing and surely the auditors must insist on goodwill rightdowns.The overdue 2000000 of deferred consideration ,now with lawyers,still not yet been settled,banks must be concerned and again expect difficult and protracted talks on working capital with banks and auditors re going concern.But guess wont be good news for shareholders in general.

[charo] 19/2/2013 11:38

Good results come early ,the later they are the worse they will be.come on board put this out of it misery.

[charo] 15/2/2013 08:43

Would be carefull company is effectively insolvent have no confidence in management contract wins may well be at minimal margins .still no word on accounts or deferred consideration.

[topvest] 14/2/2013 19:35

Contract wins being announced ahead of a placing?

[tom.muir] 14/2/2013 17:51

They certainly have been it touch with the Company paleje. The company commissioned this report and paid a fee for it. Look at the small print at the end of the report.

[paleje] 14/2/2013 10:55

Investors Champion issued a note on them this morning, fairly positive under the circumstances, I would imagine they have been in touch with the company prior to completing it. Can't paste cos its double column, link at the bottom of the extract:-

...- Transformational
With the manufacturing operation having
been restructured and now in much better
shape and the Group having strengthened
its position in the market for waste and
recycling containers the outlook looks a lot
more positive.
The factory assets are now better aligned
with the Group's core business and the
factory operating 24/7 following a regular
pattern. The full benefit of the headcount
reduction should also have been seen in the
2nd half of the current year.....

[charo] 11/2/2013 08:52

another win.the question must be will the company be around to supply.deadly silence on trading front and on deferred consideration.last year went to the very last day before accounts issued,bank confidence must be shattered,the market is being left in a state of uncertainty.the company must know its financial position and surely needs to inform .where are the nomads.

[charo] 04/2/2013 09:35

great news on contract award but silence on year end is worrying.

[charo] 02/2/2013 12:03

deadly silence.

[topvest] 14/12/2012 08:43

Yes, agree that would be more likely.

[charo] 14/12/2012 08:41

cant see the attraction for coral in any deal other than scavenging out of admin.the excess of liabilities means impossible to add value in share deal.

[topvest] 13/12/2012 17:46

It's an interesting one isn't it. I don't hold, but would say it's 50/50 that they will survive. If there are no skeletons in the closet, and Mr Straight can be believed then I think they stand a chance of keeping the bank on board. As you say, deferred consideration is the biggy! It would be a nice deal for Coral, which i do hold, but can't see that happening unless Mr Straight gets desperate.

[charo] 13/12/2012 15:19

administration must be a real concern when look at balance sheet and factor in poor second half,as a reasnable guess based on lack of comment from js,and poor local gov spending and pressing deferred consideration claims.A rights issue is unlikely to raise the necessary 7 million to put back on parity with creditors.what value on straight order book say 3.5 to 4 mill net of creditors.so break up on cards .4million less million costs realise stock and debtors plus 3 net.BANK IN FULL CREDITORS 50P BETTER THAN NIL.

[topvest] 07/12/2012 13:29

Yes, this bunch are good at selling but not so good at manufacturing. Put them together and that could be interesting!

[charo] 07/12/2012 13:26

what a change in fortunes straight v coral.

[topvest] 14/11/2012 18:52

Yes, watching with interest. Not tempted to buy until the mess is sorted!

[charo] 12/11/2012 12:26

expect a profits warning and announcement on deferred consideration needs to come soon.clearly 2 million due to dyro and accounts do not reflect this.goodwill also needs to be written down to reflect current prospects.fiasco.