Bioprogress is a stock I have been in and out of quite a few times since it floated in May but not much mention here on the Investors' Room. Does anyone else follow this stock. I see it is up 1.5p today and a few good buyers seem to have appeared.

BioProgress PLC
27 September 2005

27 September 2005

BioProgress plc
('BioProgress' or 'the Company')

(AIM: BPRG; NASDAQ: BPRG)


Interim Results for the six months to 30 June 2005


I would like to start this interim report by welcoming our new non executive
Chairman Peter Ibbetson who joined the Board on the 29 July 2005. Peter has a
wealth of experience across a number of sectors and his depth of banking and
financial relationships will be of great future value to BioProgress. We are
delighted that Peter has joined the team and look forward to working closely
with him.


As previously reported, 2005 has been a turbulent year with a number of
significant challenges for BioProgress. On 13 April 2005 the Board reported
that trading levels from BioTec Films would be below expectations. The Board
also embarked upon a strategic review of the business due to unexpected and
excessive increases in overheads and other cost structures. Although remedial
action has been taken, both during and since the conclusion of the review, the
benefits of these initiatives will take effect after the period to which this
statement relates. The management and structural changes took place in May and
June 2005 and consequently have limited impact upon the interim performance.


Financial performance


The first six months trading resulted in an operating half year loss of 6.23
million compared with a loss of 3.97 million for the same period in 2004. This
substantial increase was due to a number of factors including:

Significant monthly trading losses from the Company's trading subsidiary
BioTec Films Inc.;

Increased costs associated with inappropriate capital expenditure
commitments entered into by the Company; and

Growth in non-productive overheads across the Company's operations.



A proportion of these increased costs also related to implementation of the
LOCUM strategy and non-trading related investment activity carried out by the
Company. Both these activities have now been stopped.



Other non-trading costs have also impacted the Company's financial performance.
These include:

Legal and other professional costs principally associated with the
continuation of various litigation proceedings undertaken by the Company;
and

Consultancy arrangements.



In both these cases substantial reductions have been implemented which will
impact during the second half of the current financial year. The new management
team has taken steps to settle legal proceedings where possible but not in
situations where the asset base of the Company has been impinged upon.



Cash burn for the period under review increased significantly, a function of the
above factors, as well as an increase in general expenses. The implied monthly
burn rate peaked at approximately 1 million per month during this period. With
the new financial controls and restructuring initiatives in place this figure
currently runs at an operational rate of approximately 200,000 per month and is
expected to continue falling. This, despite the historic excessive spending
levels, left the Company with a relatively strong current cash position at the
half year of approximately 9 million.



Operational performance



Progress during the period under review was slower than anticipated. The
Company's new management team continues to review the commercial viability of
previous arrangements and expects to conclude this process within the next
trading year.



Worthy of note, however, was the delivery of the first NROBE machine for powder
encapsulation to our strategic partner FMC Biopolymer, a business unit of the
FMC Corporation.



The development of the Company's first TABWRAP machine is proceeding on course
for demonstration at the Madrid cPHI conference despite issues relating to its
development earlier in the year. Integration of BioTec's development team with
the technical team within Cambridgeshire, carried out post the period under
review has yielded positive results within a more project management style
structure. We expect this to impact positively upon the Company's performance
towards the end of the financial year and the next trading year onwards.



The Company has continued to develop new relationships with prospective
commercial partners; a drive which was increased after the period under review.
Most of these developments relate to sensitive commercial developments and
consequently the Company has committed to strict confidentiality undertakings in
respect of such developments. Nevertheless, these developments present
significant opportunities for the Company and continued validation of the
strength and robustness of its intellectual property asset base.



Post results events



As stated at our Annual General Meeting ('AGM'), despite the turbulence of the
period under review the quick actions taken and remedial measures implemented by
management have enabled a rapid restructuring with the result that the Company
remains in a relatively strong position both commercially and financially. Some
of the steps taken have included:

Restructuring of the operations of the Company to a matrix project
management approach with fully costed resource centres applied in a
structured way for the creation of a solutions led approach to partner and
own generated projects;

Implementation of strict and effective financial and operational controls;

Separation of developmental projects with full project analysis plans;

Head count reduction of approximately 50% in the UK and 30% in the US;

Replacement of a number of our professional advisors and consultants,
which the Board continue to monitor on a 'value added' basis; and

Strengthening of the technical, scientific and developmental resources
within the Company and realignment of resources from non value generating to
value generating areas.



These measures have created new dynamism within the Company and provided a more
transparent infrastructure in which the Company's operations can be managed
effectively.



In light of the changing nature of the Company and increased activity within
Ghaliston, Anthony Fabrizi has decided to resign from the Board. We wish him
well and every success for the future. The Board expects to announce an
additional non-executive director appointment shortly to compliment our skills
and needs as a business.



I would like to thank my fellow directors and colleagues for their support
during this period and for the enthusiasm shown by the team in their
determination to remove the obstacles to growth and working with me and the new
management team in redirecting and positioning the Company for growth.



The Board remains committed to the Company's strategy, outlined at the AGM and
optimistic as to the future of the Company. We believe that the restructuring
measures implemented have created a more solid platform to efficiently realise
the Company's growth plans.


Richard Trevillion

Chief Executive Officer


Enquiries:

BioProgress plc 01354 655674
Richard Trevillion, Chief Executive Officer
Dan Farrow, Finance Director

College Hill 020 7457 2020
Adrian Duffield/Corinna Dorward



Forward-Looking Information.

The Ordinary Shares of BioProgress plc are registered under the US Securities
and Exchange Act of 1934. To the extent that this announcement contains certain
'forward-looking statements' within the meaning of the Private Securities
Litigation Reform Act of 1995, this paragraph applies. These statements are
based on management's current expectations and are subject to uncertainty and
changes in circumstances. Actual results may vary materially from the
expectations contained in the forward-looking statements. The forward-looking
statements in this release include statements addressing future financial and
operating results and the timing and benefits of the reorganisation. Detailed
information about factors pertinent to the business of the company that could
cause actual results to differ is set forth in the Company's filings with the
Securities and Exchange Commission. The Company is under no obligation to (and
expressly disclaim any such obligation to) update or alter its forward-looking
statements whether as a result of new information, future events or otherwise.
This announcement is for information only and does not constitute an offer or
invitation to acquire or dispose of any securities or investment advice. The
distribution of the announcement and/or issue of securities in certain
jurisdictions may be restricted by law. Persons into whose possession this
announcement comes are required to inform themselves about and to observe such
restrictions.

shamona - 22 Sep 2005 15:50 - 2047 of 2060
Nice recovery today, bodes well for the coming days.

Only 4 trading days till interims now, should get a run up to them.

And then a nice run down, what a load of crap this company is!

Dil,

You are good value I'll give you that :)

Now you know I am not a ramper and have been out of this for some while (last sale at 68p) but seeing as the market has since put these down to 27p, are you still saying they are 27p too expensive? :)

If you do, I think that makes you no better than the "rampers" on the way up who see a limitless sky ahead. So, my question to you Dil is, do you have a serious answer to the question - when would you buy these from a pure trading point of view? By that I mean, are you relying on the charts and if so will you only buy when they have safely cleared 160p? Or are you truly besotted by the share in a reverse sense.

If your answer is "never, they are a crock of sh*t" then I'll draw my own conclusions, but I am genuinely interested in a bear's view :)

Oh, did I not say? I've bought these back today at just under 28p. The reason is because all the "derampers" (shall we call them that?) are focussing on the historical results and past management. In my opinion, I am buying a new company, new management, new strategy. Sure it is a risk, like all tech or bio shares, but it's a damn sight less of a risk than the poor boobies who mortgaged their houses and paid 150p during the euphoria.

Anyway, I like to be open with my purchases and sales, no abuse necessary :)

It seems to have gone very quiet on here. Now there is no need to speculate about how crap the figures are/were going to be I'd have expected all those knowledgeable rampers to be out in force.

Perhaps the truth is not as palatable as was thought it was going to be.

Might be worth picking a few of these up for a recovery when they get under 20p...

[EDIT - our posts crossed Bones - my comments weren't aimed at you - just in case you thought they were]

Hi MG, perish the thought! Not bad though, an hour for the posts to cross!

mg

The results were brilliant, have you no idea how to read an rns?

80% reduction in cashburn whilst improving the business at the same time, enough money to last 4 years and thats without any revenue.

This will now break into profit in the first half of next year on the FMC deal alone.

Some of you really need to buy some books on how the market works, the early responses here were clueless at best; hang your heads in shame lol!

Bones ... no I don't think they are worth 28p and I believe you have been ripped off.

Its hard to place any value on a company like this as its just a huge gamble imo even buying on chart signals.

I prefer to buy when chart and fundamentals are both good but have often bought when just one is bullish. Problem here is both chart and fundamentals are bloody awful.

Good luck , maybe I'll join you at 160p.


Shamona .... get real .

Hey Bones .... could be worse , you could have bought YOO :-)

dil

Do you know anything about this company?

You're explanation their was laughable at best, thick as shit at worst!

ps Thought you were only returning when you had something meaningfull to add to the debate, seeing you and others run to make smart arse comments after the mm's had unjustly marked this down first thing was a pitifull sight to behold. Are you really that sad a man in real life?

Shamona, I have just bought these back but not because of the results, which couldn't have been any less "brilliant". They were awful, and demonstrate what a fine mess Graham Hind got the company into. After having grafted for some major deals, he seemed unable to grasp that it could not be run as a one man band any more.

I now regard this as a recovery stock in the sense that a new board is in place with a very different agenda to Hind. It is also a potential (I stress potential) growth stock but the work to commercialise the stuff is a long job.

Dil, have I been "ripped off"? Dunno mate! How many people have bought solid profit earners, established growth stocks etc only to see them go bust in a year. We all stand to be "ripped off" by shares. It's a game we play.

I am also encouraged by the relative lack of hype that's left in the share. It's still active but I believe a lot of the hot air (not all of it) has escaped. A lot of guys were seriously burned. The share has bumbled along around 30p for ages on relatively little volume.

I don't expect much action to be honest. It'll probably bumble around for a while yet.

It was meaningful to all but you shammy.

Take your point Bones but I prefer to play the percentage game.

bones

The losses were know about due to the profit warnings of earlier this year, what was important was the cashburn rate, cash at hand and the forward looking statement; all three exceeded my expectations and were "brilliant" imo.

These figures were for up to the end of June, these were Mr Hinds figures; the new guys have shown that in 4 months they've turned the company around.

Where do you see the bad news as I appear to have missed it?

dil

Grow up.

Could I interest you in YOO too?

Right up your street shambles.

Now only half a point down, not bad considering fid sold half a million(announced yesterday), seems the market agree's with me.

Onwards and upwards.

Death to the ambulance chasers;-)

lol ... I was here before anyone even thought of ringing for an ambulance

Well, that's me told then ;)

Back to school for me - I obviously need to revise my trading style.

How does it go again - follow a stock (blindly) down to 20% of it's market high, wait until it loses twice as much as the year before - then strike. I haven't read that in any of the texts I've found. Perhaps you can enlighten me on an appropriate reading list.

MG - one lives and learns :)

Shamona - my post made it clear why I bought. I agree that the finances are being brought under control etc but the historical results (and you said the results are "brilliant") were shocking, a total loss of control by previous management. I agree that the market was aware of this already and that is why the share price has been at 30p for ages. There were no shocks in these interims and no positive surprises either except confirmation that the new broom is sweeping efficiently. I think it more likely the lack of bad news will encourage a sense of recovery. That is my take and the reason for buying. We will find out in time.

Fair play, all the best!