Straight PLC Trading Statement (5438K)

TIDMSTT

RNS Number : 5438K

Straight PLC

22 August 2012

 
 Date:        22 August 2012 
 On behalf   Straight plc ("Straight" or "the Group") 
  of: 
 For immediate release 
 

Straight plc

Trading Statement

Straight Plc (AIM: STT), the environmental products and services group is today providing an update on trading ahead of its interim results announcement on Thursday 27 September 2012.

Group sales increased in the first half of 2012 by approximately 11% to GBP16.7m (2011: GBP15.0m). This increase in sales was assisted by strong performance from the garden and hardware sector. The Group is now trading profitably and further cost reductions and product innovations are expected to improve this position as the year progresses. Net debt at the end of June stood at GBP3.2m, a reduction from GBP4.1m at the end of December 2011.

The Group made significant further reductions in its cost base at the end of the second quarter of 2012 and during July in order to align the manufacturing capability of the factory it acquired in 2010 with core sales demand. The benefit of these actions, which included a number of redundancies, will only come through in the second half of the year. On this basis, whilst the Group has returned to underlying profitability in recent months, the Board believes that full year results are likely to be below current market expectations.

For further information please contact:

 
 Straight plc 
 James Newman, Chairman                 07850 672 727 
  Jonathan Straight, Chief Executive     0113 245 2244 
 
 Cenkos Securities 
 Ivonne Cantu (Nomad) 
  Christian Hobart (Sales)              0207 397 8980 
 
 Redleaf Polhill 
 Rebecca Sanders-Hewett                 0207 566 6720 
  Jenny Bahr                             [e-mail] 
 

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 25 million kerbside boxes, baskets and caddies to local authorities across the UK, securing its position as the industry leader.

-- The business operates through two divisions. The core Trade Business supplying products in bulk to local authorities, utilities, the waste industry, retailers and other businesses 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 Dyro Holdings, a key supplier of injection moulded products to the group. The Dyro factory, in Hull, has since been developed to include a blow moulding capability.

-- 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.

-- Three quarters of the products supplied are produced in Straight's own factory which has been expanded.

-- 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

This information is provided by RNS

The company news service from the London Stock Exchange

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