Trading Update

 

TIDMSTT 
 
RNS Number : 0325Q 
Straight PLC 
28 July 2010 
 

Date:                           28 July 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 six months ended 30 June 2010, ahead of 
its interim results announcement on 6 September 2010. 
 
The Board is pleased to report another six months of solid financial performance 
and continued strategic development. 
 
Underlying Group profits are expected to be similar to those for the half year 
to June 2009 and prospects for the full year are strong. The Group's order book 
remains at the same high levels as at the beginning of 2010 and the Board 
believes that prospects for the second half of the year are better than in the 
second half of 2009. 
 
The Group's Trade Business has continued to perform well, although both profit 
and turnover were affected by reduced sales of low margin plastic wheeled bins 
prior to the Group acquiring Helesi UK's business and assets at the end of March 
2010. However, following this acquisition and based on orders taken for plastic 
wheeled bins to date, the Group expects a recovery of these sales towards 
previous levels and anticipates that it will be able to achieve higher margins 
on these proprietary products going forward. 
 
Performance of the Group's Retail Business has continued to improve and it has 
now returned to profit.  Sales are significantly higher than in 2009 and have 
been buoyed by greatly increased local council sales with 82% of English 
districts signing up to the Group's home composting schemes following WRAP's 
exit from the market in late 2009. 
 
The Group continues to be cash generative, with cash balances at 30 June 2010 of 
GBP1.8m (31 December 2009: GBP1.6m) and with borrowings and deferred 
consideration totalling GBP1.9m relating to the Group's entry into proprietary 
plastic wheeled bin production. 
 
The Group continues to identify and progress additional opportunities for growth 
through vertical integration as well as through product and market expansion. 
 
Looking forward, the outlook for the remainder of the year is positive and the 
Board is confident that it will meet market expectations for the full year. 
 
For further information please contact: 
 
+----------------------------------------+----------------------+ 
| Straight plc                           |                      | 
+----------------------------------------+----------------------+ 
| Jim Mellor, Finance Director           | 0113 245 2244        | 
+----------------------------------------+----------------------+ 
|                                        |                      | 
+----------------------------------------+----------------------+ 
| Panmure Gordon                         |                      | 
+----------------------------------------+----------------------+ 
| Katherine Roe                          | 0207 459 3600        | 
+----------------------------------------+----------------------+ 
|                                        |                      | 
+----------------------------------------+----------------------+ 
| Redleaf Communications                 |                      | 
+----------------------------------------+----------------------+ 
| Paul Dulieu / Mike Ward                | 0207 566 6709        | 
+----------------------------------------+----------------------+ 
 
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. 
* In March 2010, Straight acquired the business and certain assets relating to 
the UK manufacturing operations of Helesi plc, providing the Group with a 
proprietary wheeled bin range for the first time. 
* Straight plc has established diverse overseas sales channels and is now 
producing and selling water butts in Australia and North America. 
* 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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