Trading Update (3669L)

TIDMSTT

RNS Number : 3669L

Straight PLC

29 July 2011

Date: 29 July 2011

On behalf of: Straight plc ("Straight" or "the Group")

Embargoed until: 1100hrs

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 2011 ahead of its interim results announcement on 27 September 2011.

Group sales increased in the first half of 2011 by 14% to approximately GBP15.0m (2010 H1: GBP13.2m). These have been assisted by contributions from the acquisitions made in 2010 and also by a significant increase in sales in the Retail Business. Despite this increase, overall sales have fallen short of management expectations.

As noted in the AGM statement of 27 May, polymer prices rose rapidly to unprecedented levels during the first part of 2011, peaking in May. These rises have impacted the profitability of certain contracts accepted prior to the rise in costs. This has also affected the performance of the recently acquired Powell Plastics operation.

Consequently, as advised in the AGM Statement, profitability for the first half of 2011 will be below management expectations. The Group expects to report a small headline operating profit for the first half, which after reorganisation costs and interest, will result in a loss before tax of approximately GBP0.1m.

Following a programme of remedial actions that is already substantially under way, the Group expects to return to profitability during the second half of the year.

For further information please contact:

 
 Straight plc 
 Jonathan Straight/Jim Mellor         0113 245 2244 
 
 Cenkos Securities 
 Ivonne Cantu/Christian Hobart        0207 397 8980 
 
 Redleaf Communications 
 Rebecca Sanders-Hewett/Jenny Bahr    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 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 Powell Plastics, a key supplier of injection moulded products to the group. The Powell 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.

-- The majority of the products the Group supplies are now produced in Straight's own factory.

-- 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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