Floated at 80p this one won't go down the skip (or "tip"), I promise.

Skip? Skip it!

They do! Straight up! Straight (STT:AIM) IS worth a little look. It's highly illiquid - well rubbish is! - my cans are always empty, lol!

What am I on?

Well STT provide waste recycling products (not just skips!) and raised 1.5 million at flotation (market cap 7 million), to enable the introduction of software that will optimise its recycling targets and sales. Everyone is seeking improvements in the amount recycled and it is infact VERY big business. It won a contract that is lucrative with Northampton County Council recently. The contract is worth over 1 million and the company confidently expects to win several additional such contracts this year. Beeson Gregory didn't take a 4% stake out of some misplaced sympathy!

The rollout potential is actually very strong and that's where a 7 million market cap looks oh so much on our side. At 112p the shares have been going up (You guessed, straight up!) having floated a few months ago. Friday's buying was not huge but quite a few I suspect very well informed people spent over 5k. New contracts look certain to follow. Local authorities will have money to spend at this time of year. (And i understand they are looking for business from big name water companies too).

Worth a little dabble imho.

Little comment here to explain "why" this year has been such rubbish - STT started at 80p about 2 years ago .... and now it's returned, having hit 2 as punters thought the World owed Straight a living. . . . what with the Recycling Bin demand (as Councils attempt to fine their citizens).....then we had the 2006-Drought and folks bought anything to hold water - Except in 2007 we needed fewer Wheelie-Bins/boxes ( I thoought WB's were European-sourced? )....and it was very wet, meaning that few of us wanted Straight products - combine this with the extra cost of Energy/plastic and it's hardly surprising it's been such a poor year . . . indeed what is surprising is that Straight Execs didn't know this two, or three, months ago - - - - why wait until now?
(that looks like careless, or Hope over Reality.)

Therefore, one wonders if there won't be another snipet to escape, just when we don't expect it?

Indeed the Surprising thing, straight-up - is that the SP is still close to the Float-figure, which contained much Hope/hype and Market expectations - to put it bluntly - - - that figure should now reflect the withered expectations . . . . so, sub-50p IMHO; - but DYOR, eh?

62p Somewhat lower, since Dec07 - so it's starting to look fair value IMHO.....but not yet.
I guess it depends on the Summer - with Garden centres making a call on the Weather...if 2008 is dr,y they'll re-order....but if not the stock will last until next year.....Straight really needs to find a non-weather-related product line, to avoid this Stop-Go relationship.
- - - - Any ideas?

Some good news at last!!!

Straight has said it has won tenders worth about 1.42 million pounds to supply food and kitchen waste collection equipment to seven local authorities in Wales.

The tender wins follow the Welsh Assembly's announcement in October 2007, that it is providing 14 million pounds in grants to local authorities to boost recycling across Wales over the next two years.

A positive outlook from Straight raised its share price 7-1/2 pence to 76, taking the sting out of the news that its pretax profits fell to 589,000 pounds from 1.957 million a year-ago.

The supplier of recycling containers said profits were hit by the extreme weather conditions in 2007 but looking ahead, it is confident that 2008 will deliver an improved trading performance, with a strong order book, a significant number of new customers and a full year's sales of new products developed in the second half of 2007.

Straight sees lower H1 profit
Straight Plc. said it will see a reduction in first-half profits from the year-ago period due to lower-than-expected sales in its retail business.

[STT] = 83p . . . . . . fell 22% today, was 60p a few weeks prior to AGM.

I have a theory that "....there is a limit to the number of waste-containers we need....."
Straight expanded into water-butts (about 2-years ago during a drought)...and I suspect this market is satisfied.....where there is a pool of consumers that "want it" - at any price - and this encourages distributors to stock more product at a better discount, without understanding they have satisfied the wealthy consumners. Hence, if the market doesn't snap up the whole stock, there will be significant delays in new orders. In particular the credit- crunch makes buyers wary, and the retail-prices must harden to pay for the (more-expensive) plastic.
What surprises me is that the sp is still this high!

STT = 43p now


Straight swings to H1 loss, sees H2 improvement - AFX


Sept 23 (Reuters) - Sept 23 (Reuters) - Recycling container supplier Straight Plc slipped to a first-half pretax loss on a poor performance from its retail business, but said it expects improvement in the second half.

The company, which warned on profits in July, said on Tuesday it is eliminating loss-making activities from its direct to consumer retail business and that this should reduce its losses for the rest of the year.

It said its core trade business has continued to perform well into the second half and has a record order book of 9 million pounds ($16.60 million).

For the half-year to June 30, Straight reported a pretax loss of 936,000 pounds, compared with a profit of 763,000 pounds a year earlier.

The company cut its interim dividend to 1 pence from 1.25 pence last year.

This is 28p worth of rubbish now

18/25 now - but I can't read any co Ann. the AFX notices are about some other companies...grr.
That apart this was a play on rubbish containers ( don't we have enough?) and water butts (ditto)...I'm not sure such a business is as valuable as it was - but this fall looks like there is some bad news out there....and I'm not sure the full order-book is altogether profitable....and that's the real issue....in these days they need to get the money before delivery....CWO.

An encouraging set of results. I hope nobody listened to hlyeo and sold at 28p last year as they've risen over 3-fold since!

Recycling containers group Straight reported a 27% increase in first-half revenue to 17.2m from 13.5m thanks to a strong performance by the group's Trade Business. The group increased its interim dividend to 1.3p from 1p.

Headline operating profits for the six months to June increased to 0.9m from 0.1m while adjusted EPS rose to 6.1p from 0.9p. Profit before tax was 0.95m, against a previous first-half loss of 0.96m which included goodwill impairment of 1.03m.

Trade Business revenue rose 36% to 16.5m from 12.1m. Straight said substantial investment last year in new products had enabled it to capitalise on its leading market share in the supply of food waste containers, the biggest growth market in the sector.

The group had developed new markets at home and overseas. Substantial progress had been made in the Garden and Hardware sectors and with waste management companies.

Gross margins increased from 17.4% to 17.5%.

Rationalisation of the Retail Business has resulted in a turn-around in trading performance, said the group. Excluding depreciation and from a lower sales base of 0.7m (H1 2008 1.4m), the business made a small profit compared to a substantial loss previously. Retail was now in a strong position to take advantage of WRAP's withdrawal from the English home compost bin market and should make a more significant contribution in 2010, said Straight. The second half has continued in line with forecasts and the group anticipates its full-year performance will be in line with market expectations.

Terrific set of results, cash flowing through, considerable potential in overseas markets and the interim dividend lifted.

New FREE commentary at

http://www.investorschampion.com/research/company/straight/

Straight says its trade order book remains at record levels. In his AGM statement, chairman James Newman says the group's Trade business has continued to experience high levels of order intake during the current financial year.

The Retail business is also experiencing increasing sales, a direct result of its appointment in April as sole supplier of compost bins to the Eastern Shires Purchasing Organisation. Sales are currently higher than in 2009 and Retail is now making a positive contribution. Integration of the Helesi UK business, which the group acquired in March, is progressing to schedule.

Management is confident that its expectations for the full year will be met. The company will provide a further update on H1 trading ahead of its close period at the end of July.

queen1, it looks like what you said in may has born fruit, listen this interview with Jonathan Straight

Thanks Morigam

LISTEN AUDIO INTERVIEW: Straight plc (STT) - Interim results

Click here

Good news!

Straight Plc has been reappointed by the Eastern Shires Purchasing Organisation (ESPO) and the Central Buying Consortium (CBC) to supply a wide range of products under a two year Framework Agreement, with the option to extend for a further two years. The estimated value of the four year Framework Agreement, which commences on 1 February 2014, is expected to be up to £100m through which Straight expects to generate at least £4m of annual revenues in line with recent levels achieved from this channel.

Of 18 possible lots, Straight bid for a total of 14 and secured a position on all of these, meaning Straight have the largest product range on the framework.

The products to be supplied include all of the Group's core product range including plastic wheeled bins, steel wheeled bins, food waste caddies and kerbside collection boxes as well as its two new products, the 3BoxStack and the Food Waste Inner Caddy.

Straight Plc holds joint supplier status on each lot with the exception of providing a Totally Managed Solution for Compost Bins where the Group is sole supplier.