More bad news from waste recycling containers supplier Straight.
The retail side of the business is losing money and trading conditions aren’t improving. This is likely to mean that full year results will be well below expectations.
Straight shares dived 12p to 34.5p.
Management blames wet weather for the 46% slump in retail business. Sales were £1.4m in the first half of 2008. The business is being reviewed and costs reduced. The review will consider the pricing model and a reduction of the range of products.
The core business supplying local authorities and the trade increased first half turnover by 11% to £12.1m. International sales are growing. However, this is not enough to make up for the lost contribution from the retail side. The overall order book is worth £5m.
Straight has a strong cash position with £2.8m in the bank at the end of June 2008.
Interim figures will be announced on 23 September. The retail review should be complete by then.
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