![](/cdn/assets/images/search/clock.png)
We could not find any results for:
Make sure your spelling is correct or try broadening your search.
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 |
TIDMSTT
RNS Number : 2654N
Straight PLC
27 September 2012
Date: 27 September 2012 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 2012
Straight plc (AIM:STT.L), the Environmental Products and Services Group and the UK's leading supplier of recycling containers, announces its interim results for the six months ended 30 June 2012.
Financial highlights:
-- Group sales increased by 11.4% to GBP16.70m (H1 2011: GBP14.99m) -- Group underlying profit* increased to GBP0.28m (H1 2011: GBP0.19m) -- Loss before tax GBP0.24m (H1 2011: loss of GBP0.11m) -- Basic loss per share of 2.1p (H1 2011: loss of 0.9p) -- Underlying earnings per share 1.8p (H1 2011: 1.1p) -- Net debt reduced from GBP4.1m (December 2011) to GBP3.2m (June 2012)
Operational Highlights:
-- Market leading position maintained -- Expansion of manufacturing site completed -- 33% reduction in factory labour costs to impact second half -- Positions on three framework agreements with YPO -- Contacts with Severn Trent Water, May Gurney and Dorset Waste Partnership
Commenting on the results, James Newman, Chairman of Straight said:
"With significant operating costs removed from the manufacturing operation, the Group is now in an excellent position to drive improved profitability and generate cash."
Chief Executive, Jonathan Straight added:
"We have once again maintained our position as market leader, having successfully grown our sales both in the UK and overseas.
"With the market for waste and recycling containers remaining buoyant we are well placed to continue to capitalise on growth both in the UK and overseas. We are confident about the future potential of the business."
*Underlying operating profit excluding share option costs and goodwill amortisation
For further information please contact:
Straight plc Jonathan Straight/Jim Mellor 0113 245 2244 Cenkos Securities Ivonne Cantu (Nomad) Christian Hobart 0207 397 8980 Redleaf Polhill Rebecca Sanders-Hewett/Jenny Bahr 0207 566 6720 straight@redleafpolhill.com
Notes to Editors
-- Straight plc is a leading manufacturer and distributor of environmental products with two key areas of current focus: Waste and recycling container solutions and Environmental home and garden products.
-- The business operates through two distinct divisions and serves a diverse marketplace:
- The 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.
-- Straight plc's offering is underpinned by significant market drivers including the legislative landscape and a number of other external influences and initiatives on the environmental agenda.
-- In addition to its leading positions in the UK market, which include being the UK's leading supplier of specialist kerbside recycling containers, Straight plc has established diverse overseas sales channels for its products, and supplies into Europe, North America, Australia and Asia.
-- Straight plc listed on aim in 2003 under ticker STT. Further information about the company and its products can be found at: www.straight.co.uk
CHAIRMAN'S STATEMENT
The Group has made substantial progress increasing its sales by 11.4% and significantly increasing underlying operating profit.* These sales were underpinned by growth in the garden and hardware sector, made possible by the Group's first full season of blow moulding manufacturing in its own plant.
Group efforts have been focused on reducing net debt and manufacturing operating costs now that the investment in the expansion of its manufacturing infrastructure is complete.
Net debt was reduced from GBP4.1m to GBP3.2m by closely controlling output and by managing inventories, which fell by GBP1.0m. The reduction in net debt was achieved despite reorganisation costs of GBP405,000, much of which was redundancy costs in the manufacturing facility.
* Underlying operating profit excluding share option costs and goodwill amortisation
Results
Group sales increased in the first half of 2012 by 11.4% to GBP16.70m (H1 2011: GBP14.99m).
Group underlying operating profit increased to GBP0.28m (H1 2011: GBP0.19m).
Trade Commercial Business
Operating profits in the Group's Trade Business doubled to GBP1.02m (H1 2011: GBP0.49m). This increase in profits was buoyed by a 7.0% increase in sales to GBP14.35m (H1 2011: GBP13.41m) and by higher margins of 15.7% (H1 2011: 12.5%). The increase in margin was attributable to the relative stability in raw material costs associated with the Group's policy to use recycled raw material and the recently added manufacturing capacity which enabled the demand for higher margin blow moulded products to be met. Neither would have been possible prior to the Group's vertical integration.
Retail Business
Retail sales also benefitted from the expansion into blow moulding manufacture. This, along with reduced operating costs, contributed to a much improved performance with operating profits increasing by 19.2% to GBP0.24m (H1 2011: GBP0.20m).
Manufacturing
New working practices have now been introduced. These, combined with a considerable reduction in factory costs, are expected to significantly improve performance in the second half and beyond. Whilst it had been hoped performance would improve early in the second quarter, protracted negotiations with the trade union delayed implementation until the end of June. As a consequence, Manufacturing incurred an operating loss of GBP0.25m (H1:2011 profit of GBP0.12m), however, plant profitability since the end of the period has been transformed.
Central costs
Central costs were GBP0.73m (H1 2011: GBP0.63m).
Overall result
Group underlying operating profit increased to GBP0.28m (H1 2011: GBP0.19m). Whilst revenue and headline performance both improved in the period, the Group recorded a loss before tax of GBP0.24m (H1: 2011 loss of GBP0.11m) after accounting for exceptional costs of GBP0.40m (H1 2011: GBP0.18m) and finance costs of GBP0.07m (H1 2011: GBP0.06m).
Earnings per share
Underlying earnings for the period were 1.8p (H1 2011: 1.1p) with a basic loss per share of 2.1p (H1 2011: loss of 0.9p).
Dividend
The Board remains committed to a policy of paying dividends. However, for the remainder of 2012, the reduction of net debt and overheads remains its priority. This will be reviewed in 2013 in light of the expected improvement in performance.
Outlook
With significant operating costs removed from the manufacturing operation, the Group is now in an excellent position to drive improved profitability and generate cash.
James H Newman
Chairman
27 September 2012
OPERATING REVIEW
We have once again maintained our position as market leader, having successfully grown our sales both in the UK and overseas.
The modernisation of our manufacturing facility has taken longer than initially expected. However, with new working practices in place from late June, the facility is well placed to be profitable in the second half of the year.
Trade Business
Municipal markets
The legislative drivers underpinning our work in the UK municipal markets remain in place with additional Government funding anticipated. Demand for higher quality secondary materials is driving an increase in the source separation of waste.
We achieved positions on three separate framework agreements let by the YPO (former Yorkshire Purchasing Organisation) covering plastic wheeled containers, recycling containers and compostable liners. Significant contract wins with May Gurney and the Dorset Waste Partnership also helped to maintain our sales line.
In spite of continued competitive pressure the Group has succeeded again in sustaining its market lead with municipal sales increasing to GBP9.20m (H1 2011: GBP9.11m).
Non municipal markets
The Board's decision to invest in proprietary blow moulding manufacture ensured that the Group was well placed to grow its sales in the garden and hardware sector.
Corporate sales, boosted by high sales of blow moulded products and also by increased overseas sales, grew to GBP5.15m (H1 2011: GBP4.30m). Overseas markets accounted for 8.9% of Trade sales, growing to GBP1.20m (H1 2011: GBP0.89m) in the period.
Retail Business
Retail sales increased 48.2% to GBP2.35m (H1 2011: GBP1.59m). As with the Trade Business, these sales were boosted by blow moulded products manufactured in the Group's new facility.
A contract with Severn Trent Water has now commenced and is expected to result in the delivery of products to 200,000 homes and generate revenues of more than GBP1m over three years.
Manufacturing operations
With the expansion of the site completed, management has been focusing on making production more efficient by reducing labour costs, modernising working practices and outsourcing manufacturing for non-core products.
The commencement of new shift patterns at the end of June was a significant milestone in this process, reducing factory labour by one third. Work will continue in the second half with further reductions in overheads planned.
Further to the success in switching the plant to the use of recycled plastic, reducing both cost and price volatility, a new two year contract for 100% renewable electricity has been negotiated which fixes energy costs at current levels.
Of the GBP2.9m consideration for the manufacturing facility agreed at acquisition, only the first instalment has been paid. Any further payments will be subject to the settlement of substantial warranty claims to be brought against the vendors.
Management and staff
The progress we have made this year has required further exceptional efforts from my Board colleagues, management and all staff. I would like to thank them for their complete commitment to the business.
Outlook
With the market for waste and recycling containers remaining buoyant we are well placed to continue to capitalise on growth both in the UK and overseas. We are confident about the future potential of the business.
Jonathan M Straight
Chief Executive
27 September 2012
Consolidated Income Statement
For the 6 months ended 30 June 2012
Half year to Half year to Year ended 30 Jun 2012 30 Jun 2011 31 Dec 2011 Unaudited Unaudited Audited Note GBP'000 GBP'000 GBP'000 Revenue 2 16,700 14,992 27,974 Cost of sales (12,807) (11,228) (21,023) ______ ______ _____ Gross profit 2 3,893 3,764 6,951 Operating costs (3,610) (3,579) (6,785) ______ ______ _____ Underlying operating profit excluding share option costs and goodwill amortisation 283 185 166 Share option costs (8) (8) (16) Amortisation (42) (44) (86) Corporate development costs - - (38) Reorganisation costs 4 (405) (183) (677) Finance costs (72) (61) (139) _____ _____ _____ Loss before taxation (244) (111) (790) Income tax credit - - 547 _____ _____ _____ Loss for the period attributable to equity holders of the parent (244) (111) (243) _____ _____ _____
Earnings per share for profit attributable to the
equity holders of the Company during the period
Basic 5 (2.1)p (1.0)p (2.1)p Adjusted 5 1.8p 1.1p 6.7p Diluted Basic 5 (2.1)p (0.9)p (2.1)p
Consolidated Statement of Changes in Equity
For the 6 months ended 30 June 2012
Half year Half year Year ended to to 30 Jun 30 Jun 31 Dec 2012 2011 2011 Unaudited Unaudited Audited GBP'000 GBP'000 GBP'000 Balance at start of period 9,766 10,292 10,292 Loss and total comprehensive outgoings for the year (244) (111) (243) Share based payments 8 8 16 Dividends paid - (300) (299) ______ ______ ______ 9,530 9,889 9,766 ______ ______ ______
Statement of Financial Position
At 30 June 2012
30 Jun 30 Jun 31 Dec 2012 2011 2011 Unaudited Unaudited Audited GBP'000 GBP'000 GBP'000 Assets Non current assets Property, plant and equipment 7,428 8,333 7,699 Intangible assets 6,798 6,786 6,838 _____ _____ _____ 14,226 15,119 14,537 Current assets Inventories 1,927 3,589 2,999 Trade and other receivables 5,184 4,591 4,143 Cash and cash equivalents 768 - - _____ _____ _____ 7,879 8,180 7,142 _____ _____ _____ Total assets 22,105 23,299 21,679 _____ _____ _____ Liabilities Current liabilities Overdraft facility - (515) (1,083) Trade and other payables (9,169) (6,870) (6,589) Financial liabilities (1,384) (1,289) (2,125) Income tax payable - (678) - Provisions (554) (515) (554) _____ _____ _____ (11,107) (9,867) (10,351) _____ _____ _____ Non current liabilities Trade and other payables - (775) - Financial liabilities (777) (1,858) (871) Deferred taxation (691) (493) (691) Provisions - (417) - _____ _____ _____ (1,468) (3,543) (1,562) _____ _____ _____ Total liabilities (12,575) (13,410) (11,913) _____ _____ _____ _____ _____ _____ Net assets 9,530 9,889 9,766 _____ _____ _____ Capital and reserves Share capital 119 119 119 Reserves 7,429 7,412 7,421 Profit and loss account 1,982 2,358 2,226 _____ _____ _____ Total equity 9,530 9,889 9,766 _____ _____ _____
Consolidated Cash Flow Statement
For the 6 months ended 30 June 2012
Half year Half year Year ended to to 30 Jun 30 Jun 31 Dec 2011 2012 2011 Unaudited Unaudited Audited GBP'000 GBP'000 GBP'000 Cash flows from operating activities Profit after tax (244) (111) (243) Adjustments for Depreciation 579 479 931 Profit on sale of property, plant and equipment (3) - (5) Intangibles amortisation 42 44 132 Net finance costs 72 61 139 Taxation expense recognised in income statement - - (547) Share option costs recognised in income statement 8 8 16 Decrease/(increase) in inventories 1,072 (959) (369) (Increase)/decrease in trade and other receivables (1,206) 588 1,206 Increase/(decrease) in trade and other payables 2,581 580 (563) ____ ____ ____ Cash generated from operations 2,901 690 697 Income tax received 165 - - ____ ____ ____ Net cash generated from operating activities 3,066 690 697 Cash flows from investing activities Purchase of business combinations net of cash - - (12) Purchases of intangibles - (2) (108) Purchases of property, plant and equipment (322) (1,167) (1,477) Proceeds from sale of property, plant and equipment 13 - 59 ____ ____ ____ Net cash used in investing activities (309) (1,169) (1,538) Cash flows from financing activities Interest paid (72) (61) (117) Dividends paid - (299) (299) Proceeds from borrowings - 100 535 Repayment of borrowings (834) (585) (1,170) ____ ____ ____ Net cash used in financing activities (906) (845) (1,051) ____ ____ ____ Net increase/(decrease) in cash and cash equivalents 1,851 (1,324) (1,892) Cash and cash equivalents at beginning of period (1,083) 809 809 ____ ____ ____ Cash and cash equivalents at end of period 768 (515) (1,083) ____ ____ ____
Notes to the Interim Results Announcement
For the 6 months ended 30 June 2012
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 2012.
These consolidated interim financial statements have been approved for issue by the Board of Directors on 27 September 2012.
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 2011 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 2011. The Board has prepared a working capital forecast based upon trading assumptions and has concluded that the Group remains a going concern.
2. Segmental information
The Group's activities are organised into three segments: Trade, Retail and Manufacturing. These divisions are the basis on which the Group reports its primary segmental information.
Trade Trade Trade Total Central Comm'l Mnf'g Adj Trade Retail o'head Total HY2012 HY2012 HY2012 HY2012 HY2012 HY2012 HY2012
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
External sales 14,349 - - 14,349 2,351 - 16,700
Inter-segment sales 6,930 (6,930) - - - -
______ ______ ______ ______ ______ ______ ______
14,349 6,930 (6,930) 14,349 2,351 - 16,700
______ ______ ______ ______ ______ ______ ______
Gross profit 2,252 1,083 - 3,335 558 - 3,893
Operating costs (1,233) (1,330) - (2,563) (316) (731) (3,610)
______ ______ ______ ______ ______ ______ ______
Underlying
Operating profit 1,019 (247) - 772 242 (731) 283
______ ______ ______ ______ ______ ______ ______
Share option costs - - - - - (8) (8)
Amortisation of
goodwill and trade marks - - - - - (42) (42)
Corporate dev't costs - - - - - - -
Reorganisation costs (153) (252) - (405) - - (405)
Finance costs - - - - - (72) (72)
______ ______ ______ ______ ______ ______ ______
Profit/(loss)
before taxtion 866 (499) - 367 242 (853) (244)
______ ______ ______ ______ ______ ______ _____ Trade Trade Trade Total Central Comm'l Mnf'g Adj Trade Retail o'head Total HY2011 HY2011 HY2011 HY2011 HY2011 HY2011 HY2011
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
External sales 13,406 - - 13,406 1,586 - 14,992
Inter-segment sales 7,956 (7,956) - - - -
______ ______ ______ ______ ______ ______ ______
13,406 7,956 (7,956) 13,406 1,586 - 14,992
______ ______ ______ ______ ______ ______ ______
Gross profit 1,681 1,488 - 3,169 595 - 3,764
Operating costs (1,195) (1,367) - (2,562) (392) (625) (3,579)
______ ______ ______ ______ ______ ______ ______
Underlying
Operating profit 486 121 - 607 203 (625) 185
______ ______ ______ ______ ______ ______ ______
Share option costs - - - - - (8) (8)
Amortisation of
goodwill and trade marks - - - - - (44) (44)
Corporate dev't costs - - - - - - -
Reorganisation costs (183) - - (183) - - (183)
Finance costs - - - - - (61) (61)
______ ______ ______ ______ ______ ______ ______
Profit/(loss)
before taxation 303 121 - 424 203 (738) (111)
______ ______ ______ ______ ______ ______ ______ Trade Trade Trade Total Central Comm'l Mnf'g Adj Trade Retail o'head Total FY2011 FY2011 FY2011 FY2011 FY2011 FY2011 FY2011 Audited Audited Audited Audited Audited Audited Audited
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
External sales 25,302 - - 25,302 2,672 - 27,974
Inter-segment sales 15,503 (15,503) - - - -
______ ______ ______ ______ ______ ______ ______
25,302 15,503 (15,503) 25,302 2,672 - 27,974
______ ______ ______ ______ ______ ______ ______
Gross profit 3,473 2,734 - 6,207 744 - 6,951
Operating costs (2,317) (2,605) - (4,922) (586) (1,277) (6,785)
______ ______ ______ ______ ______ ______ ______
Underlying
Operating profit 1,156 129 - 1,285 158 (1,277) 166
______ ______ ______ ______ ______ ______ ______
Share option costs - - - - - (16) (16)
Amortisation of
goodwill and trade marks - - - - - (86) (86)
Corporate dev't costs - - - - - (38) (38)
Reorganisation costs (393) (185) - (578) - (99) (677)
Finance costs (79) (60) - (139) - - (139)
______ ______ ______ ______ ______ ______ ______
Profit/(loss)
before taxation 684 (116) - 568 158 (1,516) (790)
______ ______ ______ ______ ______ _______ ______ 3. Dividends Half year Half year Year ended to to 30 Jun 2012 30 Jun 2011 31 Dec 2011 Unaudited Unaudited Audited GBP'000 GBP'000 GBP'000 Amounts recognised as equity distributions in the period - 305 305 Refund on 2010 dividend paid to shares held in trust - (6) (6) _____ _____ ____ - 299 299 _____ _____ _____ Date dividend paid - 03.03.11 03.03.11 Amount paid per share - 2.65p 2.65p 4. Reorganisation costs
The reorganisation costs of GBP405,000 relate mostly to the costs of making staff redundant and the reorganising of the Group's banking facilities.
5. Earnings per share Half year Half year Year ended to to 30 Jun 30 Jun 31 Dec 2012 2011 2011 Unaudited Unaudited Audited GBP'000 GBP'000 GBP'000 Earnings Earnings for the purposes of basic earnings per share being profit for the period attributable to the equity holders of the Company (244) (111) (243) Amortisation 42 44 86 Deferred tax charge - - 198 Exceptional items 405 183 678 Corporate development costs - - 38 Share scheme charges 8 8 16 ____ ____ ____ Earnings for the purposes of adjusted earnings per share being the adjusted profit for the period attributable to the equity 211 124 773 holders of the company ____ ____ ____ Number of shares Weighted average number of ordinary shares for the purposes of basic earnings per share 11,499,294 11,499,294 11,499,294 Dilutive effect of share - 260,071 - options _________ _________ _________ 11,499,294 11,759,365 11,499,294 _________ _________ _________ Earnings per ordinary share Basic (2.1)p (1.0)p (2.1)p Adjusted 1.8p 1.1p 6.7p Diluted (2.1)p (0.9)p (2.1)p
6. 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 FMGZLVVVGZZM
1 Year Straight Plc Chart |
1 Month Straight Plc Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions