![](/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 : 1916P
Straight PLC
30 September 2013
Date: 30 September 2013 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 2013
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 2013.
Highlights
-- Group EBITDA* increased by 30.0% to GBP1.12m (H1 2012: GBP0.86m) -- Group PBT increased to GBP0.34m (H1 2012: loss of GBP0.24m) -- Group gross margin increased to 26.9% (H1 2012: 23.3%) -- Underlying EPS 2.7p (H1 2012: 1.8p) -- Basic EPS 2.1p (H1 2012 loss of 2.1p) -- Innovative new products introduced -- Major contracts and tender wins
Commenting on the results, James Newman, Chairman of Straight said:
"The Group completed the first half of 2013 with a strong order book which has given a solid start to the second half. With finance in place for three years, a significantly reduced manufacturing cost base and a number of new products coming to market, the Group is in a good place to build on its achievements to date."
Chief Executive, Jonathan Straight added:
"It is a pleasure to report this positive set of results and the Group's return to profitability. Now that the vertical integration and associated reorganisation of our Group is complete, our focus returns to profitably growing revenues in all of our diverse markets."
*Underlying operating profit excluding depreciation, 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 382 4730 straight@redleafpr.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
I am pleased to report on a period in which there has been a significant improvement in the Group's financial performance. This improvement has been built upon the work completed during 2012 which aligned the Group's manufacturing operations to core customer demand. The result has been considerable cost savings and greatly improved margins.
As previously announced, the Group re-negotiated the deferred consideration associated with the acquisition of the manufacturing facility. The amount has been reduced by almost GBP0.5m and is now payable over a five year period.
On 3 June we announced that the Group had successfully re-financed its funding requirements for the next three years. These new arrangements support the Group's operating requirements and will partly fund future growth.
Results
Group EBITDA* increased by 30.0% to GBP1.12m (H1 2012: GBP0.86m), with underlying operating profits doubling to GBP0.56m (H1 2012: GBP0.28m). A significant increase in gross margins to 26.9% (H1 2012: 23.3%) and lower operating costs of GBP3.17m (H1 2012 GBP3.6m) both contributed to this improvement.
Group sales in the first half of 2013 were GBP13.90m (H1 2012: GBP16.70m). Group sales in 2012 were buoyed by the drought in early spring and subsequent over-stocking by customers which impacted 2013 demand.
The Group recorded a profit before taxation of GBP0.34m (H1 2012: loss of GBP0.24m) after accounting for share option costs, amortisation, non-recurring items and finance costs.
Underlying earnings for the period were 2.7p (H1 2012: 1.8p) with basic earnings per share of 2.1p (H1 2012: loss of 2.1p).
Dividend
The Group has a number of cash commitments to fulfil in the second half of 2013 which include the launch of two major new products. The Board remains committed to re-instating the payment of dividends as soon as possible. This matter will be reviewed in light of the anticipated continued improvement in performance.
Outlook
The Group completed the first half of 2013 with a strong order book which has given a solid start to the second half. The Group operates in diverse markets each of which present specific challenges. However, with finance in place for three years, a significantly reduced manufacturing cost base and a number of new products coming to market, the Group is in a good place to build on its achievements this year.
James H Newman
Chairman
30 September 2013
* Underlying operating profit excluding depreciation, share option costs and goodwill amortisation
OPERATING REVIEW
We began 2013 by building a strong order book following the well reported delays in municipal markets towards the end of last year. These sales, combined with a much reduced cost base, allowed us to generate vastly improved margins.
Manufacturing operations
Our factory benefitted from high utilisation following its alignment to the core business.
The introduction of the long awaited continental shift working pattern led to a significant improvement in productivity transforming an operating loss of GBP0.25m in the first half of 2012 to an operating profit this year of GBP0.56m.
Trade Commercial Business
Customer over-stocking of water butts in 2012 resulted in lower sales of GBP12.3m (H1 2012: GBP14.3m). These products deliver a high gross margin and this, combined with the pricing profile of large municipal contracts, led to a reduction in reported margins in the Trade Commercial account to 11.6%. This was mitigated in part by a 19.5% reduction in overheads. Consequently the underlying operating profit was GBP0.43m (H1 2012: GBP1.02m).
Municipal markets
Municipal sales grew by 2.2% to GBP9.4m and we achieved considerable success with tendered business. Tender successes included Hartlepool Borough Council for wheeled bins with home delivery services, Thanet District Council and East Ayrshire Council for kerbside boxes and food waste containers and the Mid Kent Waste Partnership (Ashford, Maidstone and Swale) for food waste containers with compostable liners. In addition to these tendered contracts, we were also awarded a significant contract with Serco, the international service company, to provide containers and other products for its Canterbury City Council contract.
Non-municipal markets
Sales in non-municipal markets fell from GBP5.14m to GBP2.86m because of lower water butt sales and the disposal of our DIY business. The DIY business unit contributed little to profit. We remain committed to growing the sales in all of our corporate markets including export, third party retailers and the waste management industry.
Retail Business
Underlying profits fell slightly from GBP0.24m to GBP0.22m. Gross margins increased to 30.0% (H1 2012: 23.7%) as a result of increased sales of high margin water saving products including Tapmagic(R). Improved margins and reduced overheads ensured our profitability in this area held up despite a reduction in sales of water butts.
Innovation
The development of new products remains a key strategic focus, which serves to maintain our market leading position and brand. Being attentive to the needs of our customers and through subsequent collaboration, we have developed two exciting new products with an investment of GBP0.4m. The 3BoxStack(TM) is a stacking recycling solution offering three or four separate recycling streams mounted on a trolley. The Food Waste Inner Caddy (FWIC), combines the functionality of our market-leading inner caddy designs with our market-leading food waste caddies.
Management and staff
I would like to thank my colleagues for their hard work so far this year and am grateful for their support and commitment to our continuous improvement.
Going concern
Along with my fellow directors I believe that the Group is well placed to successfully manage its business risks in spite of the current economic climate. We believe that the Group has adequate resources to continue in operational existence for the foreseeable future based upon its current forecast and committed funding facilities. For this reason we continue to adopt the going concern basis in preparing the financial statements.
Outlook
It is a pleasure to report this positive set of results and the Group's return to profitability. Now that the vertical integration and associated reorganisation of our Group is complete, our focus returns to profitably growing revenues in all of our diverse markets.
Jonathan M Straight
Chief Executive
30 September 2013
Consolidated Income Statement
For the 6 months ended 30 June 2013
Half year to Half year to Year ended 30 Jun 2013 30 Jun 2012 31 Dec 2012 Unaudited Unaudited Audited Note GBP'000 GBP'000 GBP'000 Revenue 2 13,874 16,700 27,822 Cost of sales (10,145) (12,807) (21,115) ______ ______ _____ Gross profit 2 3,729 3,893 6,707 Operating costs excluding depreciation (2,608) (3,035) (5,953) ______ ______ _____ Underlying operating profit excluding share option costs, depreciation and goodwill amortisation 1,121 858 754 Depreciation (565) (575) (998) ______ ______ ______ Underlying operating profit 556 283 (244) Share option costs (7) (8) (16) Amortisation of customer relationships and trademarks (42) (42) (83) Non-recurring items - increase in deferred consideration over previous estimate - - (477) Non-recurring items - other 3 (14) (405) (611) Finance costs (150) (72) (198) _____ _____ _____ Profit/(loss) before taxation 343 (244) (1,629) Income tax (charge)/credit 4 (97) - 177 _____ _____ _____ Profit/(loss) for the period attributable to equity holders of the parent 246 (244) (1,452) _____ _____ _____
Earnings per share for profit attributable to the
equity holders of the Company during the period
Basic and diluted 5 2.1p (2.1)p (12.6)p Adjusted basic and diluted 5 2.7p 1.8p (2.3)p
Consolidated Statement of Changes in Equity
For the 6 months ended 30 June 2013
Half year Half year Year ended to to 30 Jun 30 Jun 31 Dec 2013 2012 2012 Unaudited Unaudited Audited GBP'000 GBP'000 GBP'000 Balance at start of period 8,330 9,766 9,766 Profit/(loss) and total comprehensive income/(outgoings) for the period 246 (244) (1,452) Share based payments 7 8 16 ______ ______ ______ 8,583 9,530 8,330 ______ ______ ______
Statement of Financial Position
At 30 June 2013
30 Jun 30 Jun 31 Dec 2013 2012 2012 Unaudited Unaudited Audited GBP'000 GBP'000 GBP'000 Assets Non current assets Property, plant and equipment 7,138 7,428 7,493 Intangible assets 6,688 6,798 6,754 _____ _____ _____ 13,826 14,226 14,247 Current assets Inventories 1,567 1,927 2,121 Trade and other receivables 5,697 5,184 2,799 Cash and cash equivalents 159 768 86 _____ _____ _____ 7,423 7,879 5,006 _____ _____ _____ Total assets 21,249 22,105 19,253 _____ _____ _____ Liabilities Current liabilities Overdraft facility - - - Trade and other payables (8,760) (9,169) (7,535) Financial liabilities (636) (1,384) (1,071) Income tax payable - - - Provisions (212) (554) (243) _____ _____ _____ (9,608) (11,107) (8,849) _____ _____ _____ Non current liabilities Trade and other payables (937) - (1,070) Financial liabilities (1,510) (777) (490) Deferred taxation (611) (691) (514) _____ _____ _____ (3,058) (1,468) (2,074) _____ _____ _____ _____ _____ _____ Total liabilities (12,666) (12,575) (10,923) _____ _____ _____ _____ _____ _____ Net assets 8,583 9,530 8,330 _____ _____ _____ Capital and reserves Share capital 119 119 119 Reserves 7,444 7,429 7,437 Profit and loss account 1,020 1,982 774 _____ _____ _____ Total equity 8,583 9,530 8,330 _____ _____ _____
Consolidated Cash Flow Statement
For the 6 months ended 30 June 2013
Half year Half year Year ended to to 30 Jun 30 Jun 31 Dec 2012 2013 2012 Unaudited Unaudited Audited GBP'000 GBP'000 GBP'000 Cash flows from operating activities Profit/(loss) after tax 246 (244) (1,452) Adjustments for Depreciation 565 579 998 Loss/(profit) on sale of property, plant and equipment 2 (3) (32) Profit on disposal of intangibles (130) - - Intangibles amortisation 42 42 173 Net finance costs 150 72 198 Taxation credit recognised in income statement 97 - (177) Share option costs recognised in income statement 7 8 16 Decrease in inventories 554 1,072 878 (Increase)/decrease in trade and other receivables (2,148) (1,206) 1,174 Increase in trade and other payables 761 824 354 Decrease in provisions (31) - (311) ____ ____ ____ Cash generated from operations 115 1,144 1,819 Income tax repaid - 165 170 ____ ____ ____ Net cash generated from operating activities 115 1,309 1,989 Cash flows from investing activities Purchases of intangibles (3) - (89) Disposal of intangibles 130 - - Purchase of business combinations - deferred consideration (83) - - Purchases of property, plant and equipment (198) (322) (642) Proceeds from sale of property, plant and equipment 13 13 53 ____ ____ ____ Net cash used in investing activities (141) (309) (678) Cash flows from financing activities Net cash received from debtor facility 411 1,757 1,663 Interest paid (147) (72) (198) Proceeds from borrowings 1,639 - - Repayment of borrowings (1,054) (834) (1,607) Repayment of letter of credit facility (750) - - ____ ____ ____ Net cash received/(used) in financing activities 99 851 (142) ____ ____ ____ Net increase in cash and cash equivalents 73 1,851 1,169 Cash and cash equivalents at beginning of period 86 (1,083) (1,083) ____ ____ _____ Cash and cash equivalents at end of period 159 768 86 ____ ____ _____
Notes to the Interim Results Announcement
For the 6 months ended 30 June 2013
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 2013.
These consolidated interim financial statements have been approved for issue by the Board of Directors on 30 September 2013.
The financial information set out in this interim report does not constitute statutory accounts as defined by section 434 of the Companies Act 2006. The Group's statutory financial statements for the year ended 31 December 2012 which were prepared under IFRS as adopted by the EU have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified, included an emphasis of matter and did not contain a statement under Section 498(2) or (3) 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 2012. The income statement comparatives have been re-stated to show underlying operating profit excluding share option costs, depreciation and goodwill amortisation "EBITDA" as this is a key performance measure for the Group. 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 HY2013 HY2013 HY2013 HY2013 HY2013 HY2013 HY2013
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
External sales 12,262 - - 12,262 1,612 - 13,874
Inter-segment sales 7,207 (7,207) - - - -
______ ______ ______ ______ ______ ______ ______
12,262 7,207 (7,207) 12,262 1,612 - 13,874
______ ______ ______ ______ ______ ______ ______
Gross profit 1,418 1,828 - 3,246 483 - 3,729
Operating costs excluding
depreciation (672) (1,020) - (1,692) (266) (650) (2,608)
______ ______ ______ ______ ______ ______ ______
Underlying operating
profit excluding
depreciation 746 808 - 1,554 217 (650) 1,121
______ ______ ______ ______ ______ ______ ______
Depreciation (321) (244) - (565) - - (565)
______ ______ ______ ______ ______ ______ ______
Underlying operating 425 564 - 989 217 (650) 556
profit
Share option costs - - - - - (7) (7)
Amortisation of
goodwill and trade marks - - - - - (42) (42)
Non-recurring costs 137 - - 137 - (151) (14)
Finance costs - - - - - (150) (150)
______ ______ ______ ______ ______ ______ ______
Profit
before taxtion 562 564 - 1,126 217 (1,000) 343
______ ______ ______ ______ ______ ______ _____ 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 excluding
depreciation (821) (1,167) - (1,988) (316) (731) (3,035)
______ ______ ______ ______ ______ ______ ______
Underlying operating
profit excluding
depreciation 1,431 (84) - 1,347 242 (731) 858
______ ______ ______ ______ ______ ______ ______
Depreciation (412) (163) - (575) - - (575)
______ ______ ______ ______ ______ ______ ______
Underlying operating 1,019 (247) - 772 242 (731) 283
profit
Share option costs - - - - - (8) (8)
Amortisation of
goodwill and trade marks - - - - - (42) (42)
Non-recurring costs (153) (252) - (405) - - (405)
Finance costs - - - - - (72) (72)
______ ______ ______ ______ ______ ______ ______
Profit/(loss)
before taxation 866 (499) - 367 242 (853) (244)
______ ______ ______ ______ ______ ______ ______ Trade Trade Trade Total Central Comm'l Mnf'g Adj Trade Retail o'head Total FY2012 FY2012 FY2012 FY2012 FY2012 FY2012 FY2012 Audited Audited Audited Audited Audited Audited Audited
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
External sales 24,178 - - 24,178 3,644 - 27,822
Inter-segment sales 12,901 (12,901) - - - -
______ ______ ______ ______ ______ ______ ______
24,178 12,901 (12,901) 24,178 3,644 - 27,822
______ ______ ______ ______ ______ ______ ______
Gross profit 3,442 2,510 - 5,952 755 - 6,707
Operating costs excluding
depreciation (1,941) (2,045) - (3,986) (550) (1,417) (5,953)
______ ______ ______ ______ ______ ______ ______
Underlying operating
profit excluding
depreciation 1,501 465 - 1,966 205 (1,417) 754
______ ______ ______ ______ ______ ______ ______
Depreciation (567) (431) - (998) - - (998)
______ ______ ______ ______ ______ ______ ______
Underlying operating 934 34 - 968 205 (1,417) (244)
profit
Share option costs - - - - - (16) (16)
Amortisation of
goodwill and trade marks - - - - - (83) (83)
Non-recurring costs (91) (309) - (400) - (688) (1,088)
Finance costs (143) (55) - (198) - - (198)
______ ______ ______ ______ ______ ______ ______
Profit/(loss)
before taxation 700 (330) - 370 205 (2,204) (1,629)
______ ______ ______ ______ ______ _______ ______ 3. Non-recurring costs
The net non-recurring items of GBP14,000 consist of net non-recurring revenues of GBP137,000 in the Trade Business and costs of GBP151,000 charged centrally.
The net revenues are attributable mostly to the transfer of the Group's DIY business to Garland Products in May 2013. The non-recurring central costs are attributable mostly to the cost of the advisors of the Group's bankers incurred in the period prior to the re-financing of the Group on 31 May 2013.
4. Taxation
The taxation charge for the six months ended 30 June 2013 has been estimated based on the anticipated effective rate of 28.3% for the year ending 31 December 2013.
5. Earnings per share Half year Half year Year ended to to 30 Jun 30 Jun 31 Dec 2013 2012 2012 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 246 (244) (1,452) Amortisation of customer relationships and trademarks 42 42 83 Non-recurring items 14 405 1,088 Share scheme charges 7 8 16 ____ ____ ____ Earnings for the purposes of adjusted earnings per share being the adjusted profit for the period attributable to the equity 309 211 (265) 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 - - - options _________ _________ _________ 11,499,294 11,499,294 11,499,294 _________ _________ _________ Earnings per ordinary share Basic and diluted 2.1p (2.1)p (12.6)p Adjusted basic and diluted 2.7p 1.8p (2.3)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 DMGZLZLKGFZZ
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