Straight profits suffer as sales fall

BIN manufacturer Straight has warned falling sales will hit profits triggering a sharp drop in its share price.

The company revealed that sales for the full year are likely to finish around 9% lower than 2010.

The news saw Straight shares close last night at 29.5p, down 7.5p.

Sales in the second half had been lower than 2010 with margins also under pressure, Straight said.

It also admitted that there had been a “number of issues” affecting integration of the factory facilities acquired last year although these had now been overcome.

In a statement, the company said: “With a fully functional and enlarged factory, firm foundations are in place for a good start to the coming year.”

Straight said it had seen an upturn in orders in the final quarter of 2011.

The company also stressed it had the continued support of bankers Lloyds TSB and has renewed its credit facilities for another year.