Trading Update

 

TIDMSTT 
 
RNS Number : 0326G 
Straight PLC 
25 January 2010 
 

Date:                    25 January 2010 
On behalf of:        Straight plc ("Straight" or "the Group") 
Embargoed until: 0700hrs 
 
 
 
 
Straight plc 
Trading Update 
 
 
Straight plc (AIM: STT), the environmental products and services group, is today 
providing an update on trading for the year ended 31 December 2009 and prospects 
for 2010, ahead of its preliminary results announcement on 23 March 2010. 
 
 
Group turnover for the year ended 31 December 2009 was 11% higher than in 2008 
at over GBP28m.  Profit before tax for 2009 is expected to be in line with 
market expectations. 
 
 
The Group's Trade business saw continued growth with significant revenue 
increases being enjoyed in both its core municipal and non-municipal divisions. 
These increases were at healthy margins as a consequence of the Group's ability 
to respond quickly to the market by the appropriate investment in new product 
innovation. 
 
 
Revenues from non-municipal customers were driven by increased garden and 
hardware sales to both UK and overseas customers.  These were buoyed by the 
success of the acquisition of Harcostar in January and also, towards the end of 
the year, by the commencement of  outsourced manufacturing in the United States 
to service North American customers, following on from the success of this model 
in Australia.Around 4% of revenues were generated from overseas customers in 
2009. This figure is expected to increase substantially in 2010. 
 
 
The performance of the Group's Retail business has been transformed since 2008. 
As the business has focused on strategically important clients and products, as 
well as greatly reducing delivery costs, it has largely eradicated its operating 
losses. The foundation has now been laid, on which the large increases in sales, 
expected in 2010, can now be profitably delivered. In addition, WRAP's 
withdrawal from the English home compost bin market in October, promptly led to 
increased revenues for the Group during the fourth quarter and this is expected 
to continue into 2010. 
 
 
The rapid cash payback on the substantial investment in food waste containers 
made by the Group in 2008 has facilitated a second successive year of extensive 
capital investment in new products for both the Group's municipal and 
non-municipal customers.  In spite of such high investment, cash balances at the 
end of 2009 remained at GBP1.6m (2008: GBP1.6m). 
 
 
The final quarter of 2009 saw the Group take orders at unprecedented levels, 
leaving it in a strong position for 2010. 
 
 
 
 
For further information, please contact 
 
 
+-----------------------------------------------+---------------------------+ 
| Straight plc                                  |                           | 
+-----------------------------------------------+---------------------------+ 
| James Newman, Chairman                        | 07850 672 727             | 
| Jonathan Straight, Chief Executive            | 0113 245 2244             | 
+-----------------------------------------------+---------------------------+ 
|                                               |                           | 
+-----------------------------------------------+---------------------------+ 
| Panmure Gordon                                |                           | 
+-----------------------------------------------+---------------------------+ 
| Andrew Godber                                 | 0207 459 3600             | 
+-----------------------------------------------+---------------------------+ 
|                                               |                           | 
+-----------------------------------------------+---------------------------+ 
| Redleaf Communications                        | [e-mail]    | 
+-----------------------------------------------+---------------------------+ 
| Paul Dulieu / Kathryn Hurford                 | 0207 566 6700             | 
+-----------------------------------------------+---------------------------+ 
 
 
Notes to Editors 
  *  Straight plc is the UK's leading supplier of specialist kerbside recycling 
  containers as well as 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 12 million kerbside 
  recycling boxes to local authorities across the UK, securing its position as the 
  industry leader. 
  *  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. 
  *  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. 
  *  Straight operates a radical business model with all manufacture outsourced on an 
  international basis. Most production is local to the end market keeping freight 
  movements and associated emissions to a minimum. 
  *  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 has gained new 
  distribution channels for the business in the UK and in Europe. 
  *  Straight plc has established diverse overseas sales channels and is now 
  producing and selling water butts in Australia as well as strong initial sales 
  in the United States and Canada. 
  *  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 
   END 
 
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