TIDMSTT

RNS Number : 4322H

Straight PLC

27 May 2011

 
 Date:       27 May 2011 
 On behalf   Straight plc ("Straight" or "the Group") 
  of: 
 For immediate release

Straight plc

AGM Statement

Straight Plc (AIM: STT), the environmental products and services group, will be holding its Annual General Meeting today at 12 noon. In his address, James Newman, Chairman, will update shareholders as follows:

"I am pleased to report that sales in the first quarter of 2011 have been strong, assisted by the acquisitions made last year.

Polymer prices have risen rapidly to unprecedented levels since the beginning of the year. This has reduced margins on orders which had been accepted prior to the increase in prices. As a consequence profits in the first half of the year will be below previous management expectations.

The integration of manufacturing operations into the Group is now substantially complete with cost benefits starting to come through. New blow moulding facilities commissioned in February will be further expanded during the summer as demand remains ahead of the in-house supply capacity.

The Group has taken steps to reduce its contract risk to volatile raw material prices, and margins in the second half are forecast to improve to previously expected levels."

-end-

For further information, please contact

 
 Straight plc 
 James Newman, Chairman                 07850 672 727 
  Jonathan Straight, Chief Executive     0113 245 2244 
 
 Cenkos Securities 
 Ivonne Cantu (Nomad)                   0207 397 8980 
 Christian Hobart (Sales)               0207 397 1933 
 Redleaf Communications 
 Rebecca Sanders-Hewett                 0207 566 6700 
  Jenny Bahr                             straight@redleafpr.com

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.

-- Almost two thirds 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

END

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