for more information about stanelco click on the links.

driver's research page link
http://www.moneyam.com/InvestorsRoom/posts.php?tid=7681#lastread
website link
http://www.stanelco.co.uk/index.htm

More to the point, and forgive me if its a stupid question, but could manufacturing capacity be another reason why SEO are in the discussions announced this morning?
If they do see capacity as a problem, and the company they are talking to either has huge manufacturing capacity themselves or has licensed their own manufacturing to others and acts as supply chain management, then could this have been why SEO approached them and they have seen the potential and want to join in with an approach to their clients?
Just a thought.
Alan

Just looking ahead Alan, 15000T sounds a lot but when you talk McDonalds?
From what I hear, Starpol has many potential applications. Current capacity will be OK short-term but longer term investment in capital equipment will be needed IMO to really take advantage of environmental packaging solutions that Starpol offers.
SEO did raise a lot of cash this year though and hopefully they'll sell off the ciggie filters patent. I know some people think that is a load of bollocks but if I were one of the major tobacco companies I'd buy it even if it was never used, at least the competition couldn't steal a march.
Investment wise I'm looking long-term, short-term I can see traders making money shorting this as all factual news in the pipeline may provide the opportunity to sell/short. That then provides investment buying opportunities.

Thanks for that, Andy.
To be quite honest, with the news about "a big american take away chain" being interested being common knowledge for a week before the RNS, I was pleased that the SP didn't drop further on the release, cos the BORSON brigade must have been having a whale of a time.
Still happy.
Alan

Hi andy
This is what SEO said about the French regarding output.
No 37 on the research page.

Biotec has the capabilities to pioneer, innovate and commercialize
biodegradable plastic bags. With the support of its owners Stanelco
and SP Metal, Biotec is well placed to benefit from the policy and
will be able to gear up manufacturing and have the capability to meet
the demands of the French market by 2010, which will be in excess of
one million tons.

"We have the capability and technology - all we require is the
incentive to implement it. We are very excited at the prospect of
developing and providing products to what will be a huge market."

Have held this share since -1p days could sell with sizeable( for me) profit but then I'd have no reason to visit this BB and I would miss the wit and repartee. Having said that in a world that must go green sooner rather than later how can SEO fail - long term?

run out of cash? someone comes up with a better product, the share pool is diluted even further to name but a few....god the comapny has never made a penny in profit ever and people are questioning how it can ever fail.......bugz thansk for the email...i do have an interest in the share...i am short as i have stated and i do not see my posts as "arsey" and to be honest comparing SEO to GOOG is daft.....GOOG has a world wide brand...makes profit and has huge potential (hence the large market cap) SEO has a contract with ASDA to provide cling film :-)

Stanelco PLC
16 December 2005

16 December 2005

Stanelco plc ('Stanelco' or 'the Company')

Pre Close Update

Stanelco is today issuing a Pre Close Update prior to reporting its Preliminary
Results to 31st October 2005, which are scheduled to be released in February
2006.

GREENSEAL

Stanelco has made significant progress in the development and commercialisation
of its GREENSEAL technology.

We are currently working with ASDA and four of its key suppliers to fulfil the
initial stage of the ASDA contract. Current potential placements are expected
to lead to orders in excess of 50 conversions with one supplier to ASDA.
Another supplier is presently indicating a requirement for another 30 machines.

In order to avoid suppliers having to shut off machines for retrofit during the
busy Christmas period and to overcome any possible delays, the Company has
acquired several MAP (Modified Atmosphere Packaging) machines to convert to
operate GREENSEAL technology. These machines will be available to substitute
suppliers' machines in production, removing any obstacles of production being
periodically offline.

In addition, the Company is making significant progress with a number of OEM's
to adopt GREENSEAL as an option. This is likely to lead to further opportunities
of deliveries in parallel to the retro fit programme with ASDA.

Interest in the GREENSEAL product remains high. Outside the UK, the Company
remains in active negotiation with other major supermarket chains in both the US
and Continental Europe and it is hoped the results of these discussions will
impact the current financial year. The first US specification machines are now
on their way to the United States to our partners Advanced Technologies.

Biotec

Sales of Biotec materials (Biodegradable, compostible and edible polymers based
upon starch) are continuing to both SPhere (formerly SP Metal) and other
customers. The relationship with SPhere is working well. We are on schedule to
substantially increase in 2006 the production capacity of these materials -
including Starpol to 20,000 tonnes by early 2007.

In the US we have experienced a great appetite for Biotec products and are now
in discussions with a number of major US companies across a range of consumer
sectors on both Biotec packaging alone as well as in conjunction with the
GREENSEAL product. Sustainability is increasingly becoming a key consideration
for US companies as they look to reduce the use of oil based products.

Pressure from environmental groups on the use of plastic is coming under
increasing scrutiny by Governments. The recent announcement in France that
plastic bags will be banned by 2010 has both demonstrated the potential value of
the Biotec acquisition and at the same time opened up this market opportunity
for us. We continue to work on a full range of biodegradable materials to
replace plastics at the same or lower cost.


Welsh Grant Funding

We are pleased to announce that we have received a substantial offer of Regional
Selective Assistance funding in relation to a proposed production and R&D
facility in Blaenau Gwent. The offer of funding will allow Stanelco to invest in
creating a c.3m production and materials development facility based upon
Biotec's technologies for the primary purpose of substituting conventional
plastic for packaging and other applications with biodegradable alternatives
from replenishable sources such as starch.

Cigarette Filters

We announced our intention to dispose of our biodegradable starch-based
cigarette filter technology acquired through the Biotec joint venture.
Rothschild have been appointed to seek out interested parties and we expect this
process to take a minimum of 6 months. The Board believes a successful sale of
this technology should create significant value for shareholders.

Quantum Finish

The launch in Europe of Reckitt Benckiser's new automatic dishwashing product
Finish Quantum (R) in addition to their increasing sales of Electrasol Gelpacs
(R) in the same segment in the North American market is expected to contribute
towards a growing royalty stream through our Aquasol subsidiary which
contributed technology towards these products.

ELECTRASOL, GELPACS, FINISH, QUANTUM, are trade marks of Reckitt Benckiser plc
(RB.L)

Frogpack

A number of the distribution and manufacturing deals for Frogpack, (innovative
protective transit packaging), have been restructured and we are now seeing an
increase in the number of leads to sell FrogPack products.

Carclo

Stanelco jointly owns a patent with Carclo plc for injection moulded water
soluble capsules for drug delivery and dietary supplements. We have made
encouraging progress in the last few months with this technology. We are working
closely with a customer who intends to use the technology in veterinary
applications. High level discussions are underway with major drug delivery
companies on the human application of the technology.

Conclusion

The current year has seen steady progress on a number of fronts. The Board
believes that the Company will make further progress in 2006 and is increasingly
well positioned to exploit its market leading technology and IP.


- Ends -

That has to be the worst closing statement tha I have seen - there is nothing new and there is very little info on revenue.

There is no mention about progress on the 200 orders - except that there is an expectation to achieve 80. 80 out of the 200 or 80 as well as the 200.?

I cannot help feel disappointment at a very poor statement

What do others think?.

Morning Baza,
Wishy washy, but i wrote about 6 weeks ago that I considered Starpol to be the real ticket, with Greenseal a comparative sideshow. The most positive thing I saw in the entire statement was "In the US we have experienced great appetite for Biotecs products".
There appears to have been a realisation at SEO that the low hanging fruit is getting people to use starpol now. Not persuade them to expend capital on greenseal retrofitting.
Mixed, and unlikely to set the world on fire.
Just glad it finally came today and I can go away, without wondering.
Alan

No figures again. Disappointed. I think i could have written that for them. We need to see if EVO can put a better spin on it, i hope so.

Wheres Starpol gone? SEO said 30 days thats gone. I know they may need to negotiate as well but why then say 30 days? They should just say its being evaluated.

Was very worried when i saw " funding" in the RNS title. Thank god for the welsh ;o)

Overall i feel i've learnt nothing.

Progress baza = zilch. No conversions done IMO other than maybe the 5 mentioned months ago.

6 months into the deal yet they are worried about production runs during the Xmas period. Get real SEO, if Greenseal is that good these suppliers should have been biting our bloody hand off to convert the machines.

Nothing new, everything in the future. SEO needs orders and conversions now...

Also, and I have mentioned this before. By 2007 Biotech will produce 20000 tons of Starpol? Christ, that just ain't anything like enough for the type of deals that the company 'say' they are chasing.

Thought they had maybe learnt their lesson about RNS's but clearly not!

Alan, I just don't agree regards Starpol.

Greenseal should be easy money with high profit margins whereas they cannot produce nearly enough Starpol to generate any decent levels of income. Ok, so they give others the rights to the IP but frankly I doubt that will earn SEO much.

Its all about the Greenseal and that frankly is now teetering on the brink.

Perhaps no new news, but the confirmation of progress that investors have been asking for is in the contents. If SEO had attempted to be more specific on figures, the usual cry of bulling out a release would have been made.

To me these are the sections to concentrate on.

1 Current potential placements are expected
to lead to orders in excess of 50 conversions with one supplier to ASDA.
Another supplier is presently indicating a requirement for another 30 machines

2 In addition, the Company is making significant progress with a number of OEM's to adopt GREENSEAL as an option.

3 We are on schedule to substantially increase in 2006 the production capacity of these materials - including Starpol to 20,000 tonnes by early 2007.

4 In the US we have experienced a great appetite for Biotec products

5 Welsh Grant Funding

6 Cigarette Filters .....we expect this process to take a minimum of 6 months.

7 Quantum Finish ...... increasing sales

8 Frogpack......now seeing an increase in the number of leads to sell FrogPack products.

9 Carclo......High level discussions are underway with major drug delivery
companies on the human application of the technology.

How can this be the worst closing statement.

qchalmers,
I am happy to disagree with you about starpol. I just think of the amount of plastic pakaging thrown away every day (not just food packaging).
On a not quite so seperate note, the government has today been lambasted for its own departments not achieving its own environmental goals regarding emissions, recycling and biodegrading. On the same day the Welsh assembly give SEO a 3m grant.
I'm not suggesting a connection for one moment, but it is interesting that every day brings another story of the environmental imperative, and starpol could very easily be a large step towards achieving that.
Certainly not adding, but still in for the long haul.
Alan

Perhaps an overreaction - but I read the 80 conversions as being a total of 80 out of the 200 (ie a drop of 120) - not in addition to.

I read all the rest as more Jam tomorrow - with little in the specifics.

I am no analyst - a simple man by nature - and it came across as flat, uninspiring and hollow.

I am glad others see it differently - but I wonder how the market will react - I would not be surprised to see a drop of at least 1p. I hope I am wrong

Hmmm!

Not sure myself. Greenseal is not delivering promised run out due, by the look of it, to the fact the food producers have to take a line of production out to retrofit the machines

SEO seem to be trying to get round this by acquiring "several" machines to retrofit themselves so they can be fitted into producers lines with minimal disruption. Why don't they tell us exactly how many machines ?? Several could mean as low as 2 (or to be honest with this company it could mean 1!!)

So the question is, if they have to do the retrofitting themselves and they only have say 3 machines at any one time -- what are the chances of 80 sales in 2006 ??

OEMs are key here, but few take ups and producers will only buy when current equipment becomes obsolete. Presumably Asda not pushing suppliers on the basis that if they did, so many lines would be down they would not have any food to sell.

The Xmas line for reason for slow sales, is a bit of a sad point, as this problem seems to have been going on since the Summer - which is either worrying for SEO or for my stomach, if the sausage rolls I'll be eating next week were made back in August

Starpol -- all at early stages

Overall not as bad as I thought it would be -- given massive silence on Greenseal -- but profits pushed out as expected and company still refuses to play down expectations

A good Trading Update, steady progress being made and they seem to be firing on all cycinders! I'm thinking something may be due on the ASDA/Starpol side soon, that's why there's no mention in the update. When you think of all the possible deals they're currently in discussions about, 2006 has the potential to be a massive year!

Baza,
I think the lack of specifics is perhaps due to the stage of negotiations as much as anything.
Also. no figures is not unusual in a preclose statement that comes prior to finals we already know will be less than awe-inspiring!
If you really wanted to put a positive spin on it, and I don't, I just want facts, you could actually read it that the interest levels have been higher than anticipated and the business is spending more time and effort than originally thought on dealing with leads, at the expense of the logistics of roll out. Bad mangement perhaps, but bad in a good way(?).
Anyway. It shuts up people talking about 5 conversions. We now know its 16 times that.
Alan

......and obviously my analysis is crap - 'cos the market has opened with an increase in the sp. 'Cos I cant read the things that are not written Think I will go back to gardening.

Baza