Trading Update
25 January 2010 - 6:00PM
UK Regulatory
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 | straight@redleafpr.com |
+-----------------------------------------------+---------------------------+
| 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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