STRAIGHT (STT) – 95p

The environmental products group Straight, which produces wheelie bins, food waste caddies, compost bins and the like, has recently announced an encouraging trading update and followed that with news that it had entered into a three year framework agreement to supply its products to a large customer. 

The trading statement, which provided an update on trading for the year ended 31 December 2009, revealed that group turnover for 2009 was 11% higher than 2008, with pre-tax profits expected to be in line with market expectations.  The group’s core trade business has seen continued growth with a significant increase in revenue at healthy margins, whilst the retail business has been transformed since 2008 when it was incurring significant losses.  The latter is expected to grow strongly in 2010 with further growth also expected in the trade business. 

The group has also signed a major framework agreement with the Eastern Shires Purchasing Organisation and the Central Buying Consortium, local government purchasing and distribution consortia with a potential geographic spread from Nottinghamshire to Hampshire and extending from Bristol in the West to Norfolk in the East.  Straight has been awarded joint supplier status on an extensive range of core products including steel wheeled bins, kerbside boxes and food waste caddies.  It has also been awarded sole supplier status for the provision of compost bins to the same consortia.  The agreement will last for three years and should generate revenue of over £8m for the group.

These are positive developments and we look for further news on progress when the 2009 results are announced on 23rd March 2010.

Article written by Simon Flather - Independant Financial Publications

Further details about STRAIGHT click here