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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Straight | LSE:STT | London | Ordinary Share | GB0033695486 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 77.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
Hot Features
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TIDMSTT
RNS Number : 1729S
Straight PLC
06 September 2010
Date: 6 September 2010
On behalf of: Straight plc ("Straight" or "the Group")
Embargoed for release at 0700hrs
Straight plc
Interim Results
For the six months ended 30 June 2010
Straight plc (AIM:STT.L), the Environmental Products and Services Group and the
UK's leading supplier of recycling containers, is pleased to announce its
interim results for the six months ended 30 June 2010.
Highlights:
· Underlying Operating Profit increased from GBP0.95m to GBP0.99m
· Gross Margin increased from 18.3% to 24.8%
· Adjusted EPS increased from 6.1p to 6.5p
· Dividend increased from 1.3p to 1.35p
· Growth of 7% in overseas sales
· Acquisition of UK business and assets of Helesi
· Acquisition of Dyro Holdings
Commenting on the results, James Newman, Chairman of Straight said:
"The Group continues to maintain a healthy order book and with the benefit of
recent acquisitions, the Board is confident that performance in the second half
of 2010 will exceed expectations."
Chief Executive, Jonathan Straight added:
"We are continuing to perform in line with our stated strategy. The completion
of two significant acquisitions has laid strong foundations for future growth
and excellent progress continues to be made on all fronts."
For further information contact:
+----------------------------------------+------------------------+
| Straight plc | |
+----------------------------------------+------------------------+
| James Newman, Chairman / Jonathan | 07850 672727 / 07977 |
| Straight, CEO | 002366 |
+----------------------------------------+------------------------+
| | |
+----------------------------------------+------------------------+
| Cenkos Securities plc | |
+----------------------------------------+------------------------+
| Ivonne Cantu/Christian Hobart | 0207 397 8980 |
+----------------------------------------+------------------------+
| | |
+----------------------------------------+------------------------+
| Redleaf Communications | |
+----------------------------------------+------------------------+
| Lucy Salaman/ Rebecca Sanders-Hewett | 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 20 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.
* 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.
* Almost 2/3 of the products supplied are produced in Straight's own factory and
there are plans to expand this facility in the near future.
* 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
CHAIRMAN'S STATEMENT
I am delighted to report another six months of strong financial performance.
The Group has succeeded in completing two major acquisitions so far this year,
both of which will strengthen our product offering in our core market place and
form a robust platform for future growth.
Results
Underlying operating profit was GBP0.99m (H1 2009: GBP0.95m), an excellent
performance in light of the continuing difficult economic conditions.
Turnover for the period was GBP13.2m (H1 2009: GBP17.2m). The fall in revenue
was attributable to a reduction in the sales of plastic wheeled bins at low
margins, following changes to the Group's UK distribution agreement with Helesi
plc ("Helesi"). However, as a result of the Group's acquisition of the UK
manufacturing assets of Helesi on 31 March 2010, this position is now being
rectified. Excellent progress is being made towards recovering the Group's
former 10-15% UK market share in these products, but at higher margins.
Trade Business
Underlying operating profit in the Group's Trade Business fell slightly to
GBP1.64m (H1 2009: GBP1.75m). This fall was attributable to the lack of
availability of plastic wheeled bins but was offset by the growth in profit
contribution from other products.
The Group has successfully continued to reduce its reliance on the UK municipal
sector. Profits attributable to both office recycling containers and products
sold to garden and hardware customers have increased during the period.
Gross margins increased substantially to 24.2% (H1 2009: 17.5%) as a result of
the reduction in factored plastic wheeled bin sales.
Retail Business
Turnover in the Retail Business increased substantially to GBP1.16m (H1 2009:
GBP0.72m). This increase reflected the Group's success in securing the
sole-supplier position on the National Home Composting Framework, which was let
early in 2010 following WRAP's withdrawal from the market in September 2009.
The business, which was loss making in 2009, recorded an operating profit in the
period of GBP34,000 (H1 2009: loss of GBP44,000).
Central Costs
Central costs have continued to be well controlled.
Overall Result
After accounting for acquisition costs of GBP0.09m (H1 2009: GBPnil),
exceptional items of GBP0.04m (H1 2009: GBPnil) and finance costs of GBP0.01m
(H1 2009: GBPnil), the Group recorded profit before tax of GBP0.85m (H1 2009:
GBP0.95m).
Earnings Per Share
Adjusted earnings per share for the period were 6.5p (H1:2009 6.1p) with basic
earnings per share of 5.3p (H1 2009: 5.9p).
Dividend
The Board remains confident in the future performance of the business and has
declared an interim dividend of 1.35p per share (H1 2009: 1.3p), which will be
payable on 17 December 2010 to shareholders on the register at 19 November 2010.
Acquisitions
Having successfully restructured the Group during the last eighteen months, the
Board is now implementing a five year plan to create a vertically integrated and
diverse group with an international profile. Considerable progress has been
made in the delivery of this plan with the completion of two acquisitions this
year.
On 31 March 2010, the Group acquired the business and certain assets relating to
the UK manufacturing operations of Helesi, for a total consideration of
GBP1.65m. This acquisition provides the Group with a proprietary plastic
wheeled bin range for the first time.
On 13 August 2010, the Group acquired its leading injection moulding partner,
Dyro Holdings Limited ("Dyro"), which trades as Powell Plastics, for a
consideration of GBP2.9m. This vertical integration move into direct
manufacture strengthens the Group's position in its core markets, enhances
margins and will form a platform for the Group's future development.
Outlook
The Group continues to maintain a healthy order book and with the benefit of
recent acquisitions, the Board is confident that performance in the second half
of 2010 will exceed current expectations.
James H Newman
Chairman
6 September 2010
OPERATING REVIEW
In March of this year I forecast a positive outlook for 2010 and commented that
further acquisitions were likely which would bring us closer to the source of
our products. I am pleased to confirm that we have delivered on both counts.
Performance in the first half continued to be strong and we entered the second
half with an excellent order book. The acquisition of the UK business of Helesi
is integrating well and contracts worth GBP2.6m have recently been secured with
improved margins. The process of vertical integration commenced with this
acquisition and was further developed in August with the purchase of moulding
partner Dyro. We are now a direct manufacturer of wheeled bins as well as many
of our other core products.
Trade Business
Municipal Recycling Containers
Sales of our core proprietary products, including kerbside boxes and food waste
caddies, have held up very well as a result of our proven product performance
and strong brand.
Overall turnover was down due to low sales of wheeled bins as a consequence of
changes to the Helesi relationship. There was little impact on profits as
historically wheeled bin margins were low. The opportunity to acquire Helesi's
UK business was identified whilst the Board was examining options to re-enter
this market with a proprietary range of products. This route offered a more
rapid solution and was pursued. Sales are now returning to the levels
previously enjoyed, but at improved margins.
Sales of our Steelybin product range increased by 37%. This was in spite of a
general decline in the UK market caused by a fall in demand from the waste
management industry. 27% of Steelybin orders in the period were taken from
overseas customers.
Corporate Recycling
Sales of our Ecosort range have increased by over 400% compared to the first
half of 2009. Orders for these high margin products are received from a wide
and growing customer base. We have invested in further product developments,
which have been well received by the market. We intend to develop this area in
the future.
Garden and Hardware
Our Harcostar premium garden brand has continued to grow in strength with a 17%
increase in sales. The new development of the TuffBucketTM builders' pail for
key retail accounts is now improving margins on this previously factored item.
Now made in our own factory exclusively from recycled materials, the bucket is
produced with a rapid cycle time maximising profitability.
Overseas Markets
Overseas revenues, including those from northern Europe, Australasia and the
Middle East, increased by 7%.
Sales to North America have been weaker this year. However, we remain committed
to this market and are addressing the issue with our local partner.
We have now recruited distributors in several parts of the world and recently
supplied Ecosort containers to new markets including Spain and the Czech
Republic.
Retail Business
Sales have increased by 61% to GBP1.16m (H1 2009: GBP0.72m) following the
establishment of a national framework for home compost bins and associated
services early in 2010. We are the only supplier on this framework and have now
signed up more than 85% of English district councils to the programme.
The recent appointment of a Retail Business Director gives the necessary drive
and direction to this division, which has now returned to profit.
Acquisitions
The acquisition of the Helesi UK business during the period and the recently
completed acquisition of Dyro form part of a broader strategy of growth, both
organic and acquisitive. These two acquisitions are the first steps in our five
year plan, which is on track.
Cash Generation
I am pleased to report a net cash position of GBP0.4m despite the ongoing
expenditure on corporate development. Our bankers continue to be supportive of
our expansion plans, and since 30 June 2010 we have taken on GBP1.5m of further
bank debt to fund the Dyro acquisition. The Board is comfortable with the
Group's current level of gearing.
Outlook
The work we have now completed continues to strengthen the Group's position as
the leader in its core markets for waste and recycling containers.
Whilst there will be some improvement to profits in 2010, we expect the main
benefit to come in 2011 when the two recent acquisitions will have been fully
integrated.
We are continuing to perform in line with our stated strategy. The completion
of two significant acquisitions has laid strong foundations for future growth
and excellent progress continues to be made on all fronts.
Jonathan M Straight
Chief Executive
6 September 2010
Consolidated Income Statement
For the 6 months ended 30 June 2010
+--------------------------+--------------+--------------+--------------+--------------+
| | | Half year to | Half year to | Year ended |
+--------------------------+--------------+--------------+--------------+--------------+
| | | 30 Jun 2010 | 30 Jun 2009 | 31 Dec 2009 |
+--------------------------+--------------+--------------+--------------+--------------+
| | | Unaudited | Unaudited | Audited |
+--------------------------+--------------+--------------+--------------+--------------+
| | Note | GBP'000 | GBP'000 | GBP'000 |
+--------------------------+--------------+--------------+--------------+--------------+
| | | | | |
+--------------------------+--------------+--------------+--------------+--------------+
| Revenue | 2 | 13,192 | 17,159 | 28,320 |
+--------------------------+--------------+--------------+--------------+--------------+
| Cost of sales | | (9,917) | (14,025) | (22,639) |
+--------------------------+--------------+--------------+--------------+--------------+
| | | ______ | ______ | _____ |
+--------------------------+--------------+--------------+--------------+--------------+
| Gross profit | 2 | 3,275 | 3,134 | 5,681 |
+--------------------------+--------------+--------------+--------------+--------------+
| | | | | |
+--------------------------+--------------+--------------+--------------+--------------+
| Operating costs | | (2,282) | (2,185) | (4,126) |
+--------------------------+--------------+--------------+--------------+--------------+
| | | ______ | ______ | _____ |
+--------------------------+--------------+--------------+--------------+--------------+
| Underlying operating | | 993 | 949 | 1,555 |
| profit | | | | |
+--------------------------+--------------+--------------+--------------+--------------+
| | | | | |
+--------------------------+--------------+--------------+--------------+--------------+
| Corporate development | | (92) | - | - |
| costs | | | | |
+--------------------------+--------------+--------------+--------------+--------------+
| Exceptional items | | (40) | - | - |
+--------------------------+--------------+--------------+--------------+--------------+
| Finance income | | - | 2 | 1 |
+--------------------------+--------------+--------------+--------------+--------------+
| Finance costs | | (14) | - | - |
+--------------------------+--------------+--------------+--------------+--------------+
| | | _____ | _____ | _____ |
+--------------------------+--------------+--------------+--------------+--------------+
| Profit before taxation | | 847 | 951 | 1,556 |
+--------------------------+--------------+--------------+--------------+--------------+
| | | | | |
+--------------------------+--------------+--------------+--------------+--------------+
| Income tax expense | 3 | (238) | (267) | (417) |
+--------------------------+--------------+--------------+--------------+--------------+
| | | _____ | _____ | _____ |
+--------------------------+--------------+--------------+--------------+--------------+
| Profit for the period | | 609 | 684 | 1,139 |
| attributable to equity | | | | |
| holders of the parent | | | | |
+--------------------------+--------------+--------------+--------------+--------------+
Earnings per share for profit attributable to the
equity holders of the Company during the period
+--------------------------+-----+-------+-------+-------+
| Adjusted | 7 | 6.5p | 6.1p | 10.1p |
+--------------------------+-----+-------+-------+-------+
| Basic | 7 | 5.3p | 5.9p | 9.9p |
+--------------------------+-----+-------+-------+-------+
| Diluted Basic | 7 | 5.2p | 5.9p | 9.9p |
+--------------------------+-----+-------+-------+-------+
Consolidated Statement of Changes in Equity
For the 6 months ended 30 June 2010
+-----------------------------+--+-----------+-----------+---------+
| | | Half | Half | Year |
| | | year | year | ended |
| | | to | to | |
+-----------------------------+--+-----------+-----------+---------+
| | | 30 | 30 | 31 |
| | | Jun | Jun | Dec |
| | | 2010 | 2009 | 2009 |
+-----------------------------+--+-----------+-----------+---------+
| | | Unaudited | Unaudited | Audited |
+-----------------------------+--+-----------+-----------+---------+
| | | GBP'000 | GBP'000 | GBP'000 |
+-----------------------------+--+-----------+-----------+---------+
| | | | | |
+-----------------------------+--+-----------+-----------+---------+
| Balance at start of period | | 9,700 | 8,918 | 8,918 |
+-----------------------------+--+-----------+-----------+---------+
| | | | | |
+-----------------------------+--+-----------+-----------+---------+
| Profit/(loss) for the | | | | |
| period attributable to the | | | | |
| equity | | | | |
+-----------------------------+--+-----------+-----------+---------+
| holders of the Company | | 609 | 684 | 1,139 |
+-----------------------------+--+-----------+-----------+---------+
| Arising on grant of share | | 8 | 13 | 22 |
| options | | | | |
+-----------------------------+--+-----------+-----------+---------+
| Dividends paid | | (253) | (230) | (379) |
+-----------------------------+--+-----------+-----------+---------+
| | | ______ | ______ | ______ |
+-----------------------------+--+-----------+-----------+---------+
| | | 10,064 | 9,385 | 9,700 |
+-----------------------------+--+-----------+-----------+---------+
| | | | | |
+-----------------------------+--+-----------+-----------+---------+
| | | ______ | ______ | ______ |
+-----------------------------+--+-----------+-----------+---------+
| | | | | |
+-----------------------------+--+-----------+-----------+---------+
Statement of Financial Position
At 30 June 2010
+------------------------+------+-----------+-----------+---------+
| | | 30 | 30 | 31 |
| | | Jun | Jun | Dec |
| | | 2010 | 2009 | 2009 |
+------------------------+------+-----------+-----------+---------+
| | | Unaudited | Unaudited | Audited |
+------------------------+------+-----------+-----------+---------+
| | | GBP'000 | GBP'000 | GBP'000 |
+------------------------+------+-----------+-----------+---------+
| | | | | |
+------------------------+------+-----------+-----------+---------+
| Assets | | | | |
+------------------------+------+-----------+-----------+---------+
| Non current assets | | | | |
+------------------------+------+-----------+-----------+---------+
| Property, plant and | 4 | 5,866 | 3,016 | 3,433 |
| equipment | | | | |
+------------------------+------+-----------+-----------+---------+
| Intangible assets | | 4,703 | 4,777 | 4,770 |
+------------------------+------+-----------+-----------+---------+
| Investments | | 35 | 35 | 35 |
+------------------------+------+-----------+-----------+---------+
| | | _____ | _____ | _____ |
+------------------------+------+-----------+-----------+---------+
| | | 10,604 | 7,828 | 8,238 |
+------------------------+------+-----------+-----------+---------+
| | | | | |
+------------------------+------+-----------+-----------+---------+
| Current assets | | | | |
+------------------------+------+-----------+-----------+---------+
| Inventories | | 1,880 | 1,508 | 1,313 |
+------------------------+------+-----------+-----------+---------+
| Trade and other | | 4,914 | 5,080 | 3,102 |
| receivables | | | | |
+------------------------+------+-----------+-----------+---------+
| Cash and cash | | 1,831 | 2,342 | 1,584 |
| equivalents | | | | |
+------------------------+------+-----------+-----------+---------+
| | | _____ | _____ | _____ |
+------------------------+------+-----------+-----------+---------+
| | | 8,625 | 8,930 | 5,999 |
+------------------------+------+-----------+-----------+---------+
| | | | | |
+------------------------+------+-----------+-----------+---------+
| | | _____ | _____ | _____ |
+------------------------+------+-----------+-----------+---------+
| Total assets | | 19,229 | 16,758 | 14,237 |
+------------------------+------+-----------+-----------+---------+
| | | _____ | _____ | _____ |
+------------------------+------+-----------+-----------+---------+
| | | | | |
+------------------------+------+-----------+-----------+---------+
| | | | | |
+------------------------+------+-----------+-----------+---------+
| Liabilities | | | | |
+------------------------+------+-----------+-----------+---------+
| Non current | | | | |
| liabilities | | | | |
+------------------------+------+-----------+-----------+---------+
| Borrowings | | (472) | - | - |
+------------------------+------+-----------+-----------+---------+
| Deferred taxation | | (178) | (120) | (178) |
+------------------------+------+-----------+-----------+---------+
| | | _____ | _____ | _____ |
+------------------------+------+-----------+-----------+---------+
| | | (650) | (120) | (178) |
+------------------------+------+-----------+-----------+---------+
| | | | | |
+------------------------+------+-----------+-----------+---------+
| Current liabilities | | | | |
+------------------------+------+-----------+-----------+---------+
| Trade and other | | (6,996) | (7,009) | (4,001) |
| payables | | | | |
+------------------------+------+-----------+-----------+---------+
| Borrowings | | (923) | - | - |
+------------------------+------+-----------+-----------+---------+
| Income tax payable | | (596) | (244) | (358) |
+------------------------+------+-----------+-----------+---------+
| | | _____ | _____ | _____ |
+------------------------+------+-----------+-----------+---------+
| | | (8,515) | (7,253) | (4,359) |
+------------------------+------+-----------+-----------+---------+
| | | | | |
+------------------------+------+-----------+-----------+---------+
| | | _____ | _____ | _____ |
+------------------------+------+-----------+-----------+---------+
| Total liabilities | | (9,165) | (7,373) | (4,537) |
+------------------------+------+-----------+-----------+---------+
| | | _____ | _____ | _____ |
+------------------------+------+-----------+-----------+---------+
| | | | | |
+------------------------+------+-----------+-----------+---------+
| | | _____ | _____ | _____ |
+------------------------+------+-----------+-----------+---------+
| Net assets | | 10,064 | 9,385 | 9,700 |
+------------------------+------+-----------+-----------+---------+
| | | _____ | _____ | _____ |
+------------------------+------+-----------+-----------+---------+
| | | | | |
+------------------------+------+-----------+-----------+---------+
| | | | | |
+------------------------+------+-----------+-----------+---------+
| Equity attributable to | | | | |
| equity holders of | | | | |
| parent | | | | |
+------------------------+------+-----------+-----------+---------+
| | | | | |
+------------------------+------+-----------+-----------+---------+
| Share capital | | 115 | 115 | 115 |
+------------------------+------+-----------+-----------+---------+
| Reserves | | 6,978 | 6,962 | 6,970 |
+------------------------+------+-----------+-----------+---------+
| Retained earnings | | 2,971 | 2,308 | 2,615 |
+------------------------+------+-----------+-----------+---------+
| | | _____ | _____ | _____ |
+------------------------+------+-----------+-----------+---------+
| Total equity | | 10,064 | 9,385 | 9,700 |
+------------------------+------+-----------+-----------+---------+
| | | _____ | _____ | _____ |
+------------------------+------+-----------+-----------+---------+
| | | | | |
+------------------------+------+-----------+-----------+---------+
Consolidated Cash Flow Statement
For the 6 months ended 30 June 2010
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| | | Half | Half | Year ended |
| | | year | year | |
| | | to | to | |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| | | 30 | 30 | 31 Dec 2009 |
| | | Jun | Jun | |
| | | 2010 | 2009 | |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| | | Unaudited | Unaudited | Audited |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| | | GBP'000 | GBP'000 | GBP'000 |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| | | | | |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| Cash flows from operating activities | | | | |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| | | | | |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| Profit after tax | | 609 | 684 | 1,139 |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| Adjustments for | | | | |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| depreciation | | 235 | 201 | 416 |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| profit on sale of property, plant and equipment | | (30) | - | (2) |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| intangibles amortisation | | 67 | 79 | 95 |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| Interest received | | - | (2) | (1) |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| Interest paid | | 15 | - | - |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| taxation expense recognised in income statement | | 238 | 267 | 417 |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| share option costs recognised in income statement | | 8 | 13 | 22 |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| (Increase)/decrease in inventories | | (567) | 25 | 220 |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| (Increase)/decrease in trade and other receivables | | (1,812) | (1,426) | 550 |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| Increase/(decrease) in trade and other payables | | 2,995 | 1,706 | (1,375) |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| | | ____ | ____ | ____ |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| Cash generated from operations | | 1,758 | 1,547 | 1,481 |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| | | | | |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| Income tax repaid | | - | - | 22 |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| Interest paid | | (15) | - | - |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| | | ____ | ____ | ____ |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| Net cash generated from operating activities | | 1,743 | 1,547 | 1,503 |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| | | | | |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| | | | | |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| Cash flows from investing activities | | | | |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| | | | | |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| Purchases of intangibles | | - | (115) | (124) |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| Purchases of property, plant and equipment | | (2,718) | (442) | (998) |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| Proceeds from sale of property, plant and equipment | | 80 | - | 1 |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| Interest received | | - | 2 | 1 |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| | | ____ | ____ | ____ |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| Net cash used in investing activities | | (2,638) | (555) | (1,120) |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| | | | | |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| | | | | |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| Cash flows from financing activities | | | | |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| | | | | |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| Proceeds from borrowings | | 1,625 | - | - |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| Repayment of borrowings | | (230) | - | - |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| Dividends paid | | (253) | (230) | (379) |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| | | ____ | ____ | ____ |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| Net cash used in financing activities | | 1,142 | (230) | (379) |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| | | | | |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| | | ____ | ____ | ____ |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| Net increase in cash and cash equivalents | | 247 | 762 | 4 |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| | | | | |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| Cash and cash equivalents at beginning of period | | 1,584 | 1,580 | 1,580 |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| | | ____ | ____ | ____ |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| Cash and cash equivalents at end of period | | 1,831 | 2,342 | 1,584 |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| | | ____ | ____ | ____ |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| | | | | |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
| | | | | |
+------------------------------------------------------+--+-----------+-----------+--------------------------------+
Notes to the Interim Results Announcement
For the 6 months ended 30 June 2010
1. General information
Straight plc "the Group" supplies container solutions for source separated waste
in the UK and overseas. The Company is registered in England under company
registration number 2923140 and its registered office is No 1 Whitehall
Riverside, Leeds, LS1 4BN. As a consequence of its AIM listing, the Group is
required to prepare statutory financial statements which comply with accounting
standards as adopted for use in the European Union "EU" in respect of its
financial year ended 31 December 2010.
These consolidated interim financial statements have been approved for issue by
the Board of Directors on 6 September 2010.
The financial information set out in this interim report does not constitute
statutory accounts as defined by the Companies Act 2006. The Group's statutory
financial statements for the year ended 31 December 2009 have been filed with
the Registrar of Companies. The auditor's report on those financial statements
was unqualified and did not contain a statement under Section 498 of the
Companies Act 2006.
These interim financial statements have been prepared on the same basis and
using the same accounting policies as used in the full financial statements for
the year ended 31 December 2009 and are in accordance with IAS 34 'Interim
Financial Reporting'.
2. Segmental information
The Group's activities are organised into two segments, its "Trade"
environmental container solutions business and its "Retail" direct to consumer
environmental products business. These divisions are the basis on which the
Group reports its primary segmental information.
+--------------------------+-----------+-----------+---------+
| | Half | Half | Year |
| | year to | year to | ended |
+--------------------------+-----------+-----------+---------+
| | 30 Jun | 30 Jun | 31 Dec |
| | 2010 | 2009 | 2009 |
+--------------------------+-----------+-----------+---------+
| | Unaudited | Unaudited | Audited |
+--------------------------+-----------+-----------+---------+
| | GBP'000 | GBP'000 | GBP'000 |
+--------------------------+-----------+-----------+---------+
| | | | |
+--------------------------+-----------+-----------+---------+
| Revenue | | | |
+--------------------------+-----------+-----------+---------+
| Trade | 12,032 | 16,436 | 27,135 |
+--------------------------+-----------+-----------+---------+
| Retail | 1,160 | 723 | 1,185 |
+--------------------------+-----------+-----------+---------+
| | _____ | _____ | _____ |
+--------------------------+-----------+-----------+---------+
| | 13,192 | 17,159 | 28,320 |
+--------------------------+-----------+-----------+---------+
| | _____ | _____ | _____ |
+--------------------------+-----------+-----------+---------+
| | | | |
+--------------------------+-----------+-----------+---------+
| Gross profit | | | |
+--------------------------+-----------+-----------+---------+
| Trade | 2,908 | 2,882 | 5,292 |
+--------------------------+-----------+-----------+---------+
| Retail | 367 | 252 | 389 |
+--------------------------+-----------+-----------+---------+
| | _____ | _____ | _____ |
+--------------------------+-----------+-----------+---------+
| | 3,275 | 3,134 | 5,681 |
+--------------------------+-----------+-----------+---------+
| | | | |
+--------------------------+-----------+-----------+---------+
| Operating costs | | | |
+--------------------------+-----------+-----------+---------+
| Trade | (1,270) | (1,133) | (2,310) |
+--------------------------+-----------+-----------+---------+
| Retail | (334) | (295) | (483) |
+--------------------------+-----------+-----------+---------+
| Central costs | (678) | (757) | (1,333) |
+--------------------------+-----------+-----------+---------+
| | _____ | _____ | _____ |
+--------------------------+-----------+-----------+---------+
| | (2,282) | (2,185) | (4,126) |
+--------------------------+-----------+-----------+---------+
| | | | |
+--------------------------+-----------+-----------+---------+
| Underlying operating | | | |
| profit | | | |
+--------------------------+-----------+-----------+---------+
| Trade | 1,638 | 1,749 | 2,982 |
+--------------------------+-----------+-----------+---------+
| Retail | 33 | (43) | (94) |
+--------------------------+-----------+-----------+---------+
| Central costs | (678) | (757) | (1,333) |
+--------------------------+-----------+-----------+---------+
| | _____ | _____ | _____ |
+--------------------------+-----------+-----------+---------+
| | | | |
+--------------------------+-----------+-----------+---------+
| | 993 | 949 | 1,555 |
+--------------------------+-----------+-----------+---------+
| | _____ | _____ | _____ |
+--------------------------+-----------+-----------+---------+
3. Income tax expense
+----------------------------+----------+-----------+-----------+---------+
| | | | | |
+----------------------------+----------+-----------+-----------+---------+
| | | Half | Half | Year |
| | | year to | year to | ended |
+----------------------------+----------+-----------+-----------+---------+
| | | 30 Jun | 30 Jun | 31 Dec |
| | | 2010 | 2009 | 2009 |
+----------------------------+----------+-----------+-----------+---------+
| | | Unaudited | Unaudited | Audited |
+----------------------------+----------+-----------+-----------+---------+
| | | GBP'000 | GBP'000 | GBP'000 |
+----------------------------+----------+-----------+-----------+---------+
| | | | | |
+----------------------------+----------+-----------+-----------+---------+
| Current tax | | 238 | 267 | 359 |
+----------------------------+----------+-----------+-----------+---------+
| Deferred tax | | - | - | 58 |
+----------------------------+----------+-----------+-----------+---------+
| | | ____ | ____ | ____ |
+----------------------------+----------+-----------+-----------+---------+
| | | 238 | 267 | 417 |
+----------------------------+----------+-----------+-----------+---------+
| | | ____ | ____ | ____ |
+----------------------------+----------+-----------+-----------+---------+
4. Property, plant and equipment
On 5 March 2010, the Company acquired the business and certain assets relating
to the UK manufacturing operations of Helesi plc for a consideration of GBP1.65m
in cash. The consideration consisted of GBP450,000 on exchange of contracts, a
further GBP450,000 on 26 March 2010 with the balance being paid in 10 equal
monthly instalments commencing 30 April 2010.
The provisional fair value of the identifiable assets acquired is equal to their
book value.
5. Dividends
+----------------------------+----------+-----------+-----------+----------+
| | | Half | Half | Year |
| | | year to | year to | ended |
+----------------------------+----------+-----------+-----------+----------+
| | | 30 Jun | 30 Jun | 31 Dec |
| | | 2010 | 2009 | 2009 |
+----------------------------+----------+-----------+-----------+----------+
| | | Unaudited | Unaudited | Audited |
+----------------------------+----------+-----------+-----------+----------+
| | | GBP'000 | GBP'000 | GBP'000 |
+----------------------------+----------+-----------+-----------+----------+
| | | | | |
+----------------------------+----------+-----------+-----------+----------+
| Amounts recognised as | | 253 | 230 | 379 |
| equity distributions in | | | | |
| the period | | | | |
+----------------------------+----------+-----------+-----------+----------+
| | | _____ | _____ | ____ |
+----------------------------+----------+-----------+-----------+----------+
| | | | | |
+----------------------------+----------+-----------+-----------+----------+
| Date dividend paid | | 30.3.10 | 5.6.09 | 18.12.09 |
| | | 4.6.10 | | |
+----------------------------+----------+-----------+-----------+----------+
| Amount paid per share | | 1.5p | 2.0p | 3.3p |
| | | 0.7p | | |
+----------------------------+----------+-----------+-----------+----------+
The interim dividend declared of 1.35p per share has not been included as a
liability in these financial statements.
6. Post balance sheet events
On 13 August 2010, the Company purchased 100% of the share capital of Dyro
Holdings Limited ('Dyro'), its leading injection moulding partner, for a
consideration of GBP2.9m. This consisted of an initial payment of GBP0.97m and
two further cash payments of GBP0.97m on each of the first and second
anniversaries of completion. The initial payment has been funded through a loan
of GBP1.5m from the Group's lending bank, Lloyds TSB. The deferred element of
the consideration will be funded from cash generated as a consequence of the
acquisition. The balance of the loan is being used to fund Dyro's working
capital requirements. Prior to the completion of the acquisition, Dyro entered
into a sale and leaseback agreement with the vendors on Dyro's property with an
annual rent of GBP145,000.
7. Earnings per share
+-----------------------+----+------------+------------+------------+
| | | | | |
+-----------------------+----+------------+------------+------------+
| | | Half | Half | Year |
| | | year | year | ended |
| | | to | to | |
+-----------------------+----+------------+------------+------------+
| | | 30 Jun | 30 Jun | 31 Dec |
| | | 2010 | 2009 | 2009 |
+-----------------------+----+------------+------------+------------+
| | | Unaudited | Unaudited | Audited |
+-----------------------+----+------------+------------+------------+
| | | GBP'000 | GBP'000 | GBP'000 |
+-----------------------+----+------------+------------+------------+
| | | | | |
+-----------------------+----+------------+------------+------------+
| Earnings | | | | |
+-----------------------+----+------------+------------+------------+
| | | | | |
+-----------------------+----+------------+------------+------------+
| Earnings for the | | | | |
| purposes of basic | | | | |
| earnings per share | | | | |
| being profit for the | | 609 | 684 | 1,139 |
| period attributable | | | | |
| to the equity holders | | | | |
| of the Company | | | | |
+-----------------------+----+------------+------------+------------+
| | | | | |
+-----------------------+----+------------+------------+------------+
| Exceptional items | | 40 | - | - |
+-----------------------+----+------------+------------+------------+
| | | | | |
+-----------------------+----+------------+------------+------------+
| Corporate development | | 92 | - | - |
| costs | | | | |
+-----------------------+----+------------+------------+------------+
| | | | | |
+-----------------------+----+------------+------------+------------+
| Share scheme charges | | 8 | 13 | 22 |
+-----------------------+----+------------+------------+------------+
| | | ____ | ____ | ____ |
+-----------------------+----+------------+------------+------------+
| Earnings for the | | 749 | 697 | 1,161 |
| purposes of adjusted | | | | |
| earnings per share | | | | |
| being the adjusted | | | | |
| profit for the period | | | | |
| attributable to the | | | | |
| equity | | | | |
+-----------------------+----+------------+------------+------------+
| holders of the | | ____ | ____ | ____ |
| company | | | | |
+-----------------------+----+------------+------------+------------+
| | | | | |
+-----------------------+----+------------+------------+------------+
| Number of shares | | | | |
+-----------------------+----+------------+------------+------------+
| | | | | |
+-----------------------+----+------------+------------+------------+
| Weighted average | | 11,499,294 | 11,499,294 | 11,499,294 |
| number of ordinary | | | | |
| shares for the | | | | |
| purposes of basic | | | | |
| earnings per share | | | | |
+-----------------------+----+------------+------------+------------+
| | | | | |
+-----------------------+----+------------+------------+------------+
| Dilutive effect of | | 205,196 | - | 55,773 |
| share options | | | | |
+-----------------------+----+------------+------------+------------+
| | | _________ | _________ | _________ |
+-----------------------+----+------------+------------+------------+
| | | 11,704,490 | 11,499,294 | 11,555,067 |
+-----------------------+----+------------+------------+------------+
| | | _________ | _________ | _________ |
+-----------------------+----+------------+------------+------------+
| | | | | |
+-----------------------+----+------------+------------+------------+
| Earnings per ordinary | | | | |
| share | | | | |
+-----------------------+----+------------+------------+------------+
| | | | | |
+-----------------------+----+------------+------------+------------+
| Adjusted | | 6.5p | 6.1p | 10.1p |
+-----------------------+----+------------+------------+------------+
| Basic | | 5.3p | 5.9p | 9.9p |
+-----------------------+----+------------+------------+------------+
| Diluted | | 5.2p | 5.9p | 9.9p |
+-----------------------+----+------------+------------+------------+
| | | | | |
+-----------------------+----+------------+------------+------------+
The exceptional items of GBP40,000 relate to costs incurred at Helesi's
Goldthorpe site which is being closed.
8. This statement is being sent to the shareholders of the Company and
will be available at the Company's registered office at No 1 Whitehall
Riverside, Leeds, LS1 4BN.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR FMGGLGKLGGZZ
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