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

Cantlose,

Yes that is another pointer to something such as a deal coming out very soon. Strange that they have not stated what the placing is for. Could it be that to give a hint now might put a deal in jeopardy. Perhaps SEO and whoever are finishing the finer detail. No evidence re this so it's just a thought.

greekman, I go along with that theory; the need for secrecy regarding the hamburger trials etc all seems to add up to a very different approach to news mgt. compared with the past where they gave too much too fast. Some time ago I was told that there was a big expectation of landing at least one of three company changing orders in June. I hope that that comment might prove to have been more than someone else trying to ramp the sp for their own short term gain. Maybe the sell in May come back on Derby Day will be spot on for SEO.

Sharesure,

As you rightly say in the past they did give too much info too fast. If it is to be put toward some sort of deal, and at the final minute it did not come off, the market through the regulator might also be a tad displeased. We have complained before about SEO and misleading info. Anyone out there who can give a good reason ( apart from what we have already said ) why no reason has been given for the placing.

The cash position at 31st Oct was 4.1m so SEO must be getting well through that. So the funds will be to take them through the next few months. There is nothing negative about that, all normal business. Given that the funding is completed (likely as T&G will have initiated release) we have a support level at 8.1p so it is really a one-way bet from here. Moreover, the somewhat more restrained statement shows positive progress. Wrap 100 is approved in the USA and moving into live trials with Mcdonalds, presumably. The implications of the Greenseal statements appears to be that we may be on the brink of actually achieving successful conversions. We already know that first new machine delivery is in about 4 weeks time. Take out the last year (!) and this would all be very positive indeed. Remember the expression of confidence that we would be back on track and therefore the original Greenseal projections would hold good, albeit with a one year delay. Also, ASDA exclusivity ends 8 weeks after the new machine delivery so that additional orders should come through from other UK supermarkets. What else do you want? Oh yes, a rise in sp - but surely even bos wants to rebuild his holding first!

Eric

EWR,

My understanding was: the first commercial installation would be within 8 weeks of the statement date which brings us to the end of June. I assumed it was a conversion not a new machine.

From PRW:

There is slower progress in Stanelcos Greenseal technology. Deals were signed for the radio frequency sealing technology in July 2005, but Stanelco admits it has still not made its first delivery.

Wagner said: We were slightly nae thinking it would be easy to retrofit machines. We had to buy replacement machines in the end which took three months but now we are up and running. We will be placing the first contracted machine in the next eight weeks.



Cantlose,

I sincerely hope that SEO are all paid up on the Biotec acquisition as the full cost was initially $25m which was subsequently split 50:50, so $12m from SEO who had already shelled out $1.23m leaving $11.77m.

The Final results stated that SEO had used 7.1m towards the first installment of the Biotec acquisition by my reckonning thats well over $12m so can only hope Sphere are paying the rest!

Interestingly, Sphere should have already paid SEO $6.25m where did that go?

The 12 month post completion installment of $6.25m for the Biotec acquisition is not due until September.

garyble: I had been going by the same statement. This refers to new machines, the first going in within 8 weeks (of 10 May). The AGM statement said 8 weeks to first commercial installation (from 2 May). Today's statement refers to Multivac conversion machines going well in trials and that Proseal AP60 'currently being converted for Hitchin Foods is consistently performing in our factory in Southampton having run for 8 hours continuously for several days without any issues'. These machines will presumably be finally commissioned when the trials are complete and machines operational on site - this depends on this fact and not an 80 day period. Therefore the earlier statements would appear to apply to the new machine(s). Do you agree? Whichever way, we do seem to be coming up to speed, although still in first gear!

Eric

End of the day the news is all positive and forward moving, I'm still confident that momentumn will increase once the technology is being used. Still in first gear as Eric points out but we could well be in second come August.

copy of email received i tried to get the answer some of you wanted but the company would not play ball
"We are unable to answer specific questions at present due to stock exchange rules we are also in a closed period."



Best regards



Sylvia Leavey

Corporate Executive Secretary & HR Manager

Stanelco plc
edit the question i asked was what was the money raised to be used for

garyble

Extract from RNS 5/9/2005
"Stanelco, the RF (radio frequency) applications group, is pleased to announce
that the acquisition of Biotec Holdings GmbH and subsidiaries ('Biotec') from E.
Khashoggi Industries LLC ('EKI') has now been completed. Following the
acquisition, the Company has now completed the sale of a 50% stake in Biotec to
SP Metal S.A. ('SP Metal'), thereby creating a joint venture (the 'JV'). SP
Metal is the leading European manufacturer of household packaging products.
Details of the JV were included in the initial announcement made on 5th July
2005.

Extract from RNS 5/7/2005

"Stanelco plc, the RF (radio frequency) applications group, is pleased to
announce that it has binding Heads of Agreement with SP Metal the leading
European manufacturer of household packaging products, for the sale of a 50%
interest in Biotec Holdings GmbH and subsidiaries ('Biotec'). Payment to
Stanelco will be satisfied through an initial consideration of US$6.25m in cash
with a further US$6.25m to be paid in two equal instalments payable on the 12th
and 24th months after closing. The deferred payments are not subject to the
satisfaction of performance criteria.

The consideration received by Stanelco will be used to fund 50% of the Biotec
acquisition as announced by Stanelco on 6th June 2005."


My understanding of the above is that SEO bought Biotec for $25m less $12.5m then sold on 50% to SP Metal.That leaves $12.5m due from SEO to EKI spread over 2 instalments(less $6.25m from SP Metal to SEO over 2 instalments).

The net effect is that SEO owe EKI $6.25m ($3.125m on 6/6/06 & $3.125m on 6/6/07).

Hope this clears up my reasoning for the injection of cash now by the T&G placing.

Hope the first due payment date is not a bad Omen!

rights issue

placing 1

placing 2

placing 3

where's all this money gone ?

Cantlose,

I do see where you're coming from but:

From RNS of 06/06/05:

Of the total consideration, US$1.23 million has already been paid in cash to EKI
as a non-refundable deposit. A further US$11.27 million is due to be paid on
completion of the acquisition which will be satisfied in cash. A further
US$6.25 million in cash is due to be paid in 12 months and a final payment of
US$6.25 million in cash is due 12 months thereafter. The deferred elements are
not subject to performance criteria. Stanelco is currently considering a number
of options for funding the acquisition, which may include the entering into
arrangements for debt facilities and/or a placing of ordinary shares for cash.

I make the date of completion 05/09/05 or thereabouts and therefore the next installemnt would follow 12 months from that date.

Bosley,

Placings 1 & 2 are mentioned in the annual report and equate to ~14.1m of which 7.1m was stated to have gone to the first installment of the Biotec acquisition. 3 machines also had to be purchased {not sure if new or used}. I also noticed that stock had increased considerably from the previous year so when you add it all up I don't think you'll be far off.

EWR,

from tonyrelaxes's AGM feedback:

GREENSEAL and DELAYS

Apart from usual unexpected problems developing new concepts and technologies, delays came about from the extreme pressures on margins imposed by ASDA/Wal-Mart. The tray lidding machines are required to be operating at full speed for 16 or more hours a day, 7 days a week.

This pressure on margins is good for SEO as it makes suppliers really need and want its cost savings advantages (and A/W want them to adopt GS) but does not allow adequate down time to convert and satisfactorily commission machines.

To overcome this SEO have purchased each of the 3 types of machines in regular use (Pro seal. Multi Vac and Mondini) to lend suppliers so there is no downtime to production lines.

Not sure if SEO bought new or used, I'd go for new to be absolutely sure they stood a good chance of working properly. I would assume from this strategy that the SEO machine would displace the first to be converted, and once they had cascaded through all conversions, the last converted machine would then slot back into the first machine spot thus releasing SEO's unit for the next company.

Garbyle from my recollection of the AGM at least one of these machines they bought was used ,a price of +- 60 K springs to mind.I dont recall which one it was ,Tony might remember but I think it cropped in my one to one with HW.He also said Terry had real difficulty in getting hold of these machines as demand was so high.Hope this helps.Warm ,sunny 22deg in Cork.

So how are we to interpret today's placing?
From the above it would seem that the money will be used for funding the Biotec acquisition - so no real news to get excited about!
Although a long term holder, I am still concerned and hope that whenever they intend to report - if someone knows please say- that the news is positive and not more jam tomorrow.
Someone previously mentioned the income from Starpol - presumably this can only be forthcoming subject to approval in the USA?

Any comments?

Thanks Mad Pad, was trying to find out cost of new and used machines.

Thanks, Garyble, that makes sense. We really need an idiot's guide for people like me. Re-reading the Chairman's statement which now makes more sense. He discusses the two steps they have taken to cope with the installing environment: a combination of temporary machinery and by having dedicated teams available to fine tune the R&D elements. The question remains as to when commercialisation is deemed to have been achieved. A Proseal machine is being given extended testing in the factory. The Multivac conversions are undergoing trials at a salad and a meat supplier. So what is meant 'by placing the first contracted machine'. This seems to imply that the Proseal and Multivac situations are still not contracts. I understand and accept your view that the first 'contracted machine' goes in to allow a rolling conversion of machines under the contract and is removed at the end of the process for another user. It is clearly a time-consuming process.

The positive thing is Lovegrove's confidence that they have the ability to make up the shortfall in the roll-out programme; also that ASDA (and WalMart) retain their confidence in Stanelco despite the difficulties in bringing the technology on line.

It does take some doing to get your head around the situation. I wish all posters would make the effort and we wouldn't have the negative and snide remarks. Greenseal remains an absolute winner in its own right although we will probably see the returns from Starpol and Wrap first.

Eric

Anyone know why Starpol 3000 hasnt recieved FDA approval yet?

Just picked this up from yesterdays FT"The cash is needed for working capital purposes ,according to traders."

OBLO

(sorry everyone else, off topic)

I thought of you as I went to a great restaurant in Monetchikovsky, central Moscow last night.

I had to, it was named Oblomov !

Tony