Trading Update (3056A)

TIDMSTT

RNS Number : 3056A

Straight PLC

31 January 2011

 
 Date:              31 January 2010 
 On behalf of:      Straight plc ("Straight" the "Company" or "the 
                     Group") 
 Embargoed until:   0700hrs 
 

Straight plc

Trading Update

Straight plc (AIM: STT), the environmental products and services group, is pleased to provide an update on trading for the year ended 31 December 2010 ahead of its preliminary results announcement on 28 March 2011.

The Company is pleased to announce that its results for the year to 31 December 2010 will be in line with market expectations.

Group turnover has increased by 8% and is attributable to the successful integration of the wheeled bin manufacturing assets acquired from Helesi UK and the fulfilment of a number of large contracts in this market. The Group has now achieved a strong proprietary manufacturing position from which it will continue to benefit.

Integration and development at the recently acquired Dyro manufacturing operation in Hull is progressing well and the Group is installing new blow moulding facilities to complement the existing injection moulding capability. The expanded site will enable the Group to manufacture over two thirds of its core product output at one location. Warehouse facilities are being extended at the site and this will create a much more cost efficient distribution hub. These facilities are expected to be completed by the end of the first quarter of 2011.

With the transformation of the Group into a vertically integrated business now largely complete, Straight is now actively seeking to broaden its product offering, both through product development and selective acquisitions.

Current trading in 2011 is in line with management expectations.

Jonathan Straight, Chief Executive of Straight plc, said:

"We are extremely pleased with the progress the Group has made in the past year, including the successful integration of two key acquisitions. We have made significant steps towards achieving the Group's strategic goals and we look forward to further strengthening our position in our various markets, enhancing shareholder value as a consequence."

For further information contact:

 
 Straight plc 
 Jonathan Straight, CEO                  07977 002366 
 
 Cenkos Securities plc 
 Ivonne Cantu (Nomad)                    0207 397 8980 
 Christian Hobart (Sales) 
 
 Redleaf Communications 
 Lucy Salaman/ Rebecca Sanders-Hewett    0207 566 6700 
 
 

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 20 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 Powell Plastics, a key supplier of injection moulded products to the group.

-- 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.

-- By the end of Q1 2011 almost two thirds of the products supplied will be produced in Straight's own factory which is currently being 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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