STT Straight

 

TIDMSTT 
 
RNS Number : 0585M 
Straight PLC 
22 January 2009 
 

Date:                    22 January 2009 
On behalf of:        Straight plc ("Straight" or "the Group") 
Embargoed until: 0700hrs 
 
 
Straight plc 
Trading Update 
 
 
Straight plc (AIM: STT), the recycling products and services group, is today 
providing an update on trading for the year ended 31 December 2008 and prospects 
for 2009, ahead of its preliminary results announcement on 26 March 2009. 
 
 
Turnover for the year ended 31 December 2008 was in the region of GBP25m (2007: 
GBP23.6m), an increase of approximately 6%. 
 
 
The Group's core Trade Business has continued to perform well with sales for the 
six months to 31 December 2008 over 30% higher than the same period in 2007 at 
approximately GBP11m. Of particular note are sales of the Group's new food waste 
container range, which has experienced strong demand from local authorities 
across the UK and continues to exceed expectations. In its Waste Strategy 2007, 
the Government identified separate food waste collections as an area of 
potential growth. 
 
 
As previously reported, the Group's Retail Business has not performed well this 
year and sales for the six months to 31 December were GBP0.9m, a 31% reduction 
on the same period in 2007.  This part of the business continued to make a loss 
during the second half of the year but, following the strategic review of this 
part of the business announced in the Group's Interim Results in September, 
it has been rationalised and unprofitable activities have been discontinued. For 
the remaining activities, a new distribution mechanism has been put in place 
which, in the three months since its implementation, has 
reduced unit delivery costs by up to 75%. As a result, the Board believes this 
division is now well placed to handle sales at the levels anticipated for 2009. 
 
 
During the period, the Group has continued to develop its overseas sales 
channels and now produces and sells water butts in Australia.  It has also 
experienced strong initial sales in North America through its local 
distributor. These activities have been buoyed by the weakness of Sterling 
against the US Dollar. 
 
 
As part of the strategic review of all of the Group's activities undertaken by 
the Board in the fourth quarter, 
there has been a considerable reduction in 
the Group's fixed overhead. Consequently, operating gearing and employee and 
inventory holding costs will be much lower going forward.  As a result of this 
review, the Group has incurred one-off redundancy and stock write-down costs of 
approximately GBP0.4m, but the capacity of the business to meet the requirements 
of its customers has not been affected by these changes. 
 
 
The Board continues to manage its working capital efficiently and can report 
cash balances of GBP1.6m at 31 December 2008 (31 December 2007: GBP1.6m). This 
is in spite of record expenditure on new tooling and product development in the 
year, which benefited trading in the second half and has laid the foundations 
for robust sales in 2009.  The value of the Group's order book at the end of 
2008 was strong, with over 40% of the 2009 budget for its Trade Business already 
booked. 
 
 
  For further information, please contact 
 
 
+-----------------------------------------------+---------------------------+ 
| Straight plc                                  |                           | 
+-----------------------------------------------+---------------------------+ 
| James Newman, Chairman                        | 07850 672 727             | 
| Jonathan Straight, Chief Executive            | 0113 245 2244             | 
+-----------------------------------------------+---------------------------+ 
|                                               |                           | 
+-----------------------------------------------+---------------------------+ 
| Panmure Gordon                                |                           | 
+-----------------------------------------------+---------------------------+ 
| Andrew Godber / Katherine Roe                 | 0207 459 3600             | 
+-----------------------------------------------+---------------------------+ 
|                                               |                           | 
+-----------------------------------------------+---------------------------+ 
| Redleaf Communications                        | straight@redleafpr.com    | 
+-----------------------------------------------+---------------------------+ 
| Paul Dulieu / Sam Robbins                     | 0207 566 6700             | 
+-----------------------------------------------+---------------------------+ 
 
 
 
 
Notes to Editors 
 
 
  *  Straight plc was established in 1993, by Jonathan Straight, to supply container 
  solutions for source separated waste. Initially one man and a desk, the company 
  grew to become the UK's leading supplier of kerbside recycling boxes as well as 
  a key supplier of other types of waste and recycling container solutions. 
 
 
 
  *  Following sustained growth, Straight joined AIM in 2003 with a view to fuelling 
  further growth. 
 
 
 
  *  In 2005, Straight acquired Blackwall Limited, the UK's largest supplier of home 
  composters and water butts. Since integrating the two businesses, Straight now 
  provides a wide range of waste and recycling solutions to local authorities, the 
  waste industry and general businesses. Through the Blackwall brand Straight 
  delivers environmental garden products directly to end users in partnership with 
  local authorities and utilities. 
 
 
 
  *  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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