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

Interesting,

If my spanish is reasonably accurate, the SPhere website states that the Biotec plant will achieve a 25,000 tonne production capacity of biodegradable pelltes by the end of 2007, which would equate to in excess of Euro 50m turnover if all sold.{http://www.spmbiel.es/default.aspx?info=000268}

Correction: the above refers to the production at the Utebo plant in Zaragoza.

Even more interesting {extract from the "news release" page of the Sphere website} translated from the Spanish:

"BIOTEC, which is 50% controlled by Stanelco, a Britsh company, had a turnover of 2.5m in 2005 and projects to increase its production capacity of bioplastics from 15,000 tonnes pa. at present, to 50,000 tonnes pa. by the end of 2006. The business does not rule out building a second plant of 50,000 tonnes pa. in France in 2007 and considers realistically to reach a production potential of bioplastics of 200,000 tonnes pa. in approximately two years, given the needs of this new market".

Thanks for that, gary, interesting stuff.

This short extract is taken from the following site ( author JoAnn Hines 20/04/06 )
It's a very good interesting article.
See link http://www.packagingessentials.com/news.asp?id=2006-04-20-16.11.34.000000

On 22nd of April it will be the 36th Earth Day Battle.
Many detractors of the packaging industry get charged up during this period with claims of what packaging is doing to the environment. The landfills are full of it, but some counties are doing something about it. "Walmart rocks packaging world with corn based order". If Walmart becomes an early adapter the rest of the packaging world will follow suit. Any oil and or gas plastic based plastic packaging supplier will be scrambling to keep their business.

End of extract.

As the article also states, the author gets several releases a day on new packaging that supports the environment.

Those with patience will see this come good, and when it does there will be no stopping it. It will IMHO be like a trickle turned into a flood.
Would have been an even better article if Stanelco had received a mention.

aldwickk - 18 Apr 2006 20:38 - 16041 of 16065
Never have so many talked about so little.

LOL

Bos-astute as usual.

garyble
Yes that is interesting stuff I will have another look at that tomorrow. Of to bed.

Going back to the buy backs, they are positive, in that they will raise the SP. This happens in 2 ways, if the buy backs are to be kept in a fund, for use on employee options etc.. then it takes them off the market and they are not available for trading, so reducing the free float in effect while held.

Second is of course "buy back for cancellation" which means the company cancels the shares and reduces the shares in issue, so the remaining shares are then worth more.

For Stanelco, if they got a huge sum for example from the cig filter patent, it would be advantageous for them to set aside 3 years of R&D and marketing money to see them through to full commercialisation of many products and then use the rest of the money to buy back and cancel a load of shares, to give their future potential EPS a major boost. Reducing the shares in issue also greatly reduces the admin costs in effect.

Buy backs are only good when the money can be used for no other constructive purpose. Stanelco would have no were near the spare cash required for a share buy-back scheme.

Forget buy-backs - we're not even generating cash yet to cover future capital investment - more likely to need to raise more funds than give any back. (Not saying it's likely, just more likely).

sd

I'd say buy-backs are way down the line - after a few years of ginourmus profits, maybe, but by that time the number of issued shares will not be an issue anyway!

4% rise today so far - better than a kick in the ear.

Buy back authority is being sought at the AGM - see Notice item 11 and Special Resolution 11. They must have some possibility in mind to take the effort of including it unless it is an annual item - cant find my previous Accounts to check.
No doubt all will be revealed on 2/5.

'ear 'ear, Oblo

If they carry out share buy back and cancel shares then it might reduce the chance of them being eyed as a take over and is protective of management. It seems a little crazy to me for a company in a development stage to release cash unless they are certain there is going to be a cash influx.

Short term gearing can be seen as useful and should or could mean the company is confident of short term and medium term developments.

TonyR,

It seems that the 10% own share purchase option is a standard item, as someone else has mentioned.

The 2003 accounts has:

"14. THAT
authority is hereby generally and unconditionally given pursuant to Section 166 of the Act, for the Company to make market purchases (as defined in Section 163(3) of the Act) of any of its own Ordinary shares of 0.1p each in such manner and on such terms as the Directors may from time to time determine provided that: (a) the authority hereby given shall, unless previously varied, revoked or renewed, expire at the conclusion of the Annual General Meeting of the Company next following the Meeting at which this resolution is passed or fifteen months after the date of the Meeting, whichever is the earlier, but so that the Company shall be entitled under such authority to conclude at any time before such expiry any contract or purchase of its own Ordinary shares which would or might be executed wholly or partly after the expiry of such authority and to make a purchase of its own shares after such time limit in pursuance of such a contract of purchase;

(b) the maximum number of shares hereby authorised to be acquired is 77,222,539 Ordinary shares of 0.1p each (being approximately 10 per cent. of the current issued Ordinary share capital of the Company); and

(c) the maximum price which may be paid for each Ordinary share of 0.1 pence each is an amount equal to 105 per cent. of the average of the prices of the business done in the Ordinary shares of the Company derived from the London Stock Exchange Daily Official List for the ten business days preceding the day of
purchase and the minimum price is 0.1 pence."

I can't see a mention of it in the 2004 report but its obviously back in the 2005 annual report.

Garyble
Thanks.
I am glad your filing and access is in a better state than my own!
Tony

Thanks Gary.

Isn't this just standard wording to leave the option open?

Oblo,

It seems to be. Someone mentioned that a few days ago.

Plus its always nice to have the option, as there "will" come a point when they could buy back, but as has also been said, I don't believe that to be anytime soon.

SP up 6% so far today - like to see it do that every day for a month!

According to the "rule of 72" that would make the sp 1 by 12/06 (taking into account weekends and bank holidays).
Is that a prediction, Oblo ;-)
Alan

Not a prediction, Alan (my names not Paul) - wishful thinking, maybe!