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

Wal-Mart's Asda Must Cut Costs to Challenge Tesco, Bond Says
June 10 (Bloomberg) -- Wal-Mart Stores Inc.'s Asda, the second-biggest U.K. grocery chain, must cut costs and lower prices to close the gap on market leader Tesco Plc, Chief Executive Andy Bond said.

``Business has slowed, but let's not talk about the business being broken,'' Bond, 40, said at a press conference in London today. ``We need to cut bureaucracy and simplify the business.''

Asda, located in Leeds, England, failed to meet its profit goal for the first quarter as competition with Tesco intensified. Since the start of the year, the company also has lost market share to rivals including Tesco, which has been quicker to expand into areas such as financial services.

Shares of Bentonville, Arkansas-based Wal-Mart, the world's largest retailer, have slid 9.5 percent this year, more than Tesco's 1.8 percent loss. Stock in Tesco gained 1.25 pence to 316.25 pence at 11:34 a.m. in London.

Bond said Asda will continue to expand its George clothing business, the U.K.'s largest apparel brand by volume. About half of Asda's annual sales of goods other than food come from George. Non-food revenue represents 30 percent of sales.

``We just can't be the best by being the cheapest,'' he said. ``George has seen tremendous growth, and it will be a key driver in the future. There's not going to be any letup on the aggressive growth of George and general merchandise, because those two things make us different from other retailers.''

Market Share

Britons spend 40 billion pounds a year on non-food goods, more than a third of their grocery outlays, according to Taylor Nelson Sofres Plc. Asda has opened three Asda Living standalone non-food stores in the past year and also runs eight George stores, with plans to add another this year.

Bond, who started the job in March, has seen Asda's share of the $202 billion U.K. grocery market fall to 16.5 percent in the 12 weeks ended May 22 from 16.6 percent a year earlier, according to a June 2 report by Taylor Nelson Sofres. Tesco raised its share to 29.9 percent from 27.6 percent.

Asda, which accounts for about 50 percent of Wal-Mart's international sales and 10 percent of total sales, will cut distribution center costs in areas such as packaging, Bond said. He declined to say whether this would involve job cuts.

Bond said he is offering employees bonuses if they can come up with suggestions on how they can cut costs in the business.

Asda had sales of 14.4 billion pounds in 2003, the most recent annual figure available. Wal-Mart's first-quarter sales totaled $70.9 billion. Tesco had sales of 31 billion pounds in the year that ended in February.

Consumer `Unease'

Wal-Mart wasn't more specific about Asda's profit goals when it discussed them on a conference call last month because the company doesn't break down the figures for its overseas divisions. The supermarket chain's same-store sales increased in the ``low single digits,'' while total sales were at the ``low end of the mid-single-digit range,'' Wal-Mart said.

According to Bond, an ``unease'' among U.K. consumers is likely to persist amid concerns over rising mortgage rates and increased fuel prices. U.K. store operators had their worst May on record, the British Retail Consortium said this week.

``In the next six to 12 months, there's going to be a lot of uncertainty,'' Bond said. ``Things won't get better, and we're planning our business around that.''

Tesco in 1998 introduced its Tesco's Finest range to lure a broader range of customers, four years before Asda started selling its Extra Special goods. Tesco was six years ahead of Asda in introducing personal-finance products such as insurance and added an Internet grocery service two years earlier.

Asda overtook J Sainsbury Plc as the U.K.'s No. 2 food retailer in 2003. Bond is concerned Asda's trading performance and Sainsbury's resurgence may mean Asda loses its position.

Sainsbury's market share rose to 15.9 percent in the 12 weeks ended May 22 from 15.5 percent a year earlier, according to Taylor Nelson Sofres data.



To contact the reporter on this story:
Angharad Couch at acouch2@bloomberg.net.
Last Updated: June 10, 2005 06:36 EDT

LOL !

Asda, which accounts for about 50 percent of Wal-Mart's international sales and 10 percent of total sales, will cut distribution center costs in areas such as packaging, Bond said. He declined to say whether this would involve job cuts.

Bond said he is offering employees bonuses if they can come up with suggestions on how they can cut costs in the business.

Cheers,
PM

Constructive comments are always welcome but,ii's comments are just crap. He seems to spend all his working day just posting messages slaging off SEO. I can only think that unlike others, he did not buy at 6p or top up at 16p-20p,and has really got the hump. As he seems not to hold any shares in SEO himself. I wonder why he spends all his time posting rubbish about them. Perhaps if he spent the same time on research he could earn himself a packet,as the more sensible investors who bought SEO when they were cheap will.

did the world end or something?? bloody hell!!

just temporarily unveiled that PM prat, well if thats the difference between a ramper and the opposite give me ii, any day, what rubbish, and pages of regurgitutated old news by the ream from PMT,

YEP i AM LONG.

ii, i have a few questions for you. the amount of time and effort you put into your posts and the knowledge you display about the workings of the market tell me that shares are an important part of your life. we all know how you feel about seo, but what companies do you hold? are you an investor or a trader? and finally , is it seo you have a problem with or is it pm? i ask because i am sick and tired of myself and others on this thread being accused of ramping.

"superrod - 10 Jun'05 - 15:55 - 5737 of 5761


jimmyb,wilbs,
i think you are both very naive. if the only way is up, everyone and their mother would be buying this.

on the plus side, knowing that so many diehards are seo fans will make my exit a lot easier when the time comes.

no offence intended to ANYONE.......i just cant believe that peeps are parting with dosh and have little grasp of reality."

superrod , no offenece to anyone?? ...my arse!!!
apart from some very excitable moments from the start of the year, this has pretty much been a level headed thread. positive and negative points are brought up and discussed amongst investors, some of them working in the packaging industry, so providing us with a better insight into the company and also, more of a grasp on the reality of our investment. like most people who have invested in seo i am a die hard fan , taking a positive view of the company , and i will continue to do so until i feel differently. that doesn't mean to say that i do not see the negatives or have doubts about wether seo can achieve all that they possibly can. for now and the forseeable future the positives outweigh the negatives.
imo, the price is down because of next weeks placing, ( no shit , sherlock!!) without news it will probably follow the same course as feb's placing and drop further for a few days (no shit , sherlock!!). pm and ii have covered every other base so whatever happens they can both say , " i told you so".

Well I'm going for the middle ground for Monday not that I care a sh*t because I have been in since 3.95p and will stay to about 395p, cash in one of my share's and buy some sweets.

Monday will be a white-sky day.

Driver

Well said. Most of us have been in for some time and we're here to stay.

PM1, Any chance you can maybe keep it "brief" in future, mate? I fell asleep mid-way through! Ta.

Well I don't give a shit if having a positive attitude to SEO makes me considered a ramper, my only view on this share is the potential based from my position within the packaging industry. In this industry, good news on the whole can be kept under wraps as it progresses, not that if I knew something I would post on here anyway BUT shit news travels like wildfire and there aint any that I've heard. However believe it or not superrod, I havn't parted with me dosh believing SEO will only ever go up you patronising sod. I "invested" based on a massive potential and if it did go tits up would not bury my head in the sand and big-up SEO but I would take my profits.
The main point re: SEO as of now is they ain't just a one product wonder.
I have to laugh at IC's high enough for now stance BUT in the same edition advise buying an explorer that needs to raise $150m investment to fund further developments. They like the pie in the sky explorers but NOT a company with the technologies (note the plural) to significantly change packaging over the next few years, saving costs/energy/product and delivering recyclable and biodegradable commercial products.

ii, take it the folk who stump up 9m at 21.15p don't read your comments full of insiderinside bollocks?

Go out for the day and you get back to about 70 posts, not many of which seem to add anything new. Given that this is likely to be an extended, and in my view highly profitable ride, this thread will head for the Guinness book of records.How about one thread for news and research, the other for general chat? As it is your thread that is being hijacked, Bosley, I guess it is your call.
Now away for a week, hope the coming one produces a few orders, and a stronger sp on my return.

bosley
i genuinely dont intend offence to anyone....after all its in my financial interest for the sp to keep rising.

i stand by my comments.....this AINT going up forever. as i have previously said, a lot here have a VERY substantial cushion, having had the foresight to buy well under 10p. there are a lot of nervous investors though who have been buying up to 30p who dont have the luxury of merely seeing their PROFIT dwindle......its HARD CASH.

bosley - I have always said I make no comment on stocks I hold as I would have rose tinted specs - I have said many times in the past if a stock is ramped up I will comment on it - and I have not accused many people of ramping - some do - most other people are just holders who want to see the price rise - fair enough.

In case people skew the distribution cente Bloomberg/Asda interview - they are talking of logistics.

"Asda, which accounts for about 50 percent of Wal-Mart's international sales and 10 percent of total sales, will cut distribution center costs in areas such as packaging, Bond said"


It means distribution centres and not suppliers - it means perhaps getting things in ready palletised for immediate display on shelves and cutting down time required at the store preparing for display. Improving the palletising system to reduce time required from distribution centre despatch to availablity on the shelves is what others have already done - its all about logistics.

The fact that Stanelco's packaging provides increased shelf life, biodegradeable packaging, and further cost reductions on actual packaging is to become a massive extra bonus for Asda and WalMart.

Things are looking so good!

statesidestateside

The fact that Stanelco's packaging provides increased shelf life, biodegradeable packaging, and further cost reductions on actual packaging is to become a massive extra bonus for Asda and WalMart.

Things are looking so good!

statesidestateside

andysmith Hi,

RE - 5767 of 5774

Excellent summing up :)

Cheers,
PM

morning. superrod, if no offence is meant then please lose the condescending tone in some of your posts. people arn't as thick as you think and if it all does go tits up , then there are plenty on this thread who will say so.