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

"The appointment follows ASDAs decision to re-launch its ready meals range this coming autumn with new recipes and new packaging. The business is worth around 30 million"
from the northern foods anouncement.

"Ferndale Foods said its 40m annual contract had been ended, "
from the ferndale announcement.


you can see asda mean business. that's a 10m p/a saving straight away. i really do hope this has something to do with greenseal..... but i aint getting my hopes up just yet. next week could be interesting but ii could be correct this time.

"My point before was Asda may have used SE0 to get figures - figures they could use against suppliers and get the cheapest price from them - so the TENDER winner is the one who can supply equal to or less than the Greenseal trial figures - "

i have said before that supermarkets don't give a shit who gets hurt as long as they get their way.

Bosley Hi,

ii talks bo**ocks and always has.

If Northern wanted to win the contract, they are more likely to use Greenseal as a way of lowering costs, and GUARANTEEING qaulity, and extreemly low returns for 'leakers'.

The multiple savings Northern can make by using Greenseal, and Starpol 2000, versus heat and laminated, oil based plastic, was more likely the reason they won the contract, than ASDA forcing their prices down.

Cheers,
PM

I see bad news - if you also take into account that the leading Greenseal trial factory Ferndale Foods were cut out and Northern Foods - as is suggested - wins the contract - it looks bad for SE0 IMO.

As Scrutable has noted at AFN - Greenseal requires no change in manpower - but Northern Foods are taking on a massive increase in manpower - meaning likely they are simply going to ramp up production through shiftwork - not through any large amount of new machines (new machines are ultra high speed) - and definitely no reference to Greenseal conversions or cap ex in winning the tender - and with Ferndale a Greenseal trial site - and Ferndale being kicked out - it looks to me like Asda want cheapest price of supply and do not care about keeping with the SE0 gentlemans agreement - bad news - could well be - potentially we may see SE0 cancel the exclusive contract with Asda due to failings in order conversion levels - cancel Asda - then you can forget Walmart - and with Walmart and 900 conversions in the SE0 price - it would collapse.

All IMO

http://media.netpr.pl/notatka_42591.html

2005-09-09

Major Food Supplier Seeks Protection Under Supermarket Code of Practice

PRNewswire LONDON September 9

Asda, the supermarket chain, is sticking by a 12-week notice period to start the delisting of the entire output, valued at GBP40m per annum, of Erith-based Ferndale Foods, its primary ready meal supplier.

LONDON, September 9 /PRNewswire/ -- Asda, the supermarket chain, is sticking by a 12-week notice period to start the delisting of the entire output, valued at GBP40m per annum, of Erith-based Ferndale Foods, its primary ready meal supplier.

This is in spite of requests from Ferndale's management, and from the Office of Fair Trading (OFT) to go to mediation and to suspend the delisting decision while this is in process. Ferndale believes that a longer and more reasonable notice period will allow it to find alternative customers and so protect the jobs of its 600 employees.

James Logan, Ferndale's Managing Director, said: "We were surprised because there was no price tender and at the time we were assured we had done nothing wrong".

However, while Asda has eventually agreed to go to mediation (some five weeks after the OFT's request), it has still not agreed to do this under the Supermarket Code of Practice nor has it agreed to the OFT's request to suspend simultaneously the delisting notice, without which any mediation will be valueless as the business will be lost before the process starts.

Mr Logan said: "This is a clear case of shutting the stable door after the horse has bolted."

As a result of the uncertainty, Ferndale's management yesterday [8/9/05] issued their staff with consultation notices in contemplation of wholesale redundancies over the next few weeks and the closure of its chilled ready meals facility.

Asda is currently locked in a legal wrangle with the OFT and is trying to prove that the Code, which requires Asda to be both reasonable and to act in good faith, does not apply. "At the moment there appears to be a lack of reasonableness and good faith. This is the Code's first real test, but its regulator appears to be powerless in enforcing the spirit of it on Asda," Mr Logan said.

"After two months of analysis, the OFT still has not formally decided whether a delisting of GBP40m of business to start after 12 weeks notice even comes under the Code, let alone in getting Asda to suspend its decision pending mediation. But if this doesn't come under the Code, what does?"

"It appears that a business that, since 1996, has been the primary supplier of chilled ready meals to a major UK supermarket, has invested millions of pounds in its production plant so it can offer in excess of 90 product lines, has grown its workforce to 600 in a designated economically-deprived area, can be threatened with seeing it all disappear without any protection. In our view, the Code is flawed and the regulator is too weak to enforce the spirit of it," he added.

There has been much discussion in the food industry about the effectiveness of the Supermarket Code. The OFT's audit of the Code earlier this year concluded that it appeared to be working effectively.

Issued on behalf of Ferndale Foods by International Public Relations Partners, 39 King Street, London WC2E 8JS

Ferndale Foods

And this comment is more interesting from the Ferndale release -

James Logan, Ferndale's Managing Director, said: "We were surprised because there was no price tender and at the time we were assured we had done nothing wrong".

So with no price tender ?????????? and with Ferndale being a Greenseal test user - why did Northern Foods win the tender with Northern Foods not being a Greenseal trial user ???

The Greenseal trials were Youngs, Ferndale and Hitchens - and now Asda goes for Northern Foods ?

Perhaps Northern Foods through diligent working can offer the best overall deal to Asda without the use of Greenseal - if they work on lower margin but higher volume - and based on information from the Greenseal trials Asda may have set them a target to beat - and they can do so with no major need to change their machines.

As we know Asda changed the packs visual appearance OUTSIDE of the Greenseal trials as well as WITH the Greenseal trials - the reference to new packaging cannot be linked into Greenseal - its more than likely the new eye catching colours and presentation of the labels - which we know had an influence in increased sales with and without Greenseal.

Asda has said it wants best price - they will not care if this means Greenseal or not - if someone is offering best price and no Greenseal - Asda will award their production to them - as Asda wants ONLY the lowest price as has been clearly stated in Asda PR.

This all could be very bad news IMO.

All IMO - DYOR.

Has Asda just been using SE0 during the tender period to privately get the best deal for themselves.

IMO and ageeing with Bosley - supermarkets do not care who they hurt along the way to getting the best supplier deals - and they have no formal contract with SE0 where there is penalty terms - if Asda suppliers fail to deliver machine conversions to SE0 - the exclusive contract with Asda is ripped up and they both go their different ways with no come back on either - except the SE0 price would plummit with the loss of Asda/Walmart.

Is this the reason behind the hyping of Biotec at the moment ?

All IMO - DYOR !

Stanelco PLC
12 September 2005

12 September 2005



Stanelco plc ("Stanelco" or the "Company")

Hard-shell Capsule Development

Stanelco, the RF (radio frequency) applications group, is pleased to announce
the successful development of an edible, starch-based hardshell capsule for
edible applications including dietary supplements and pharmaceutical uses.

Stanelco and its partner on this project, Carclo plc, have been working together
for over 5 years with the objective of producing an economically viable
alternative to two-piece hard-shell capsules made from gelatine. Carclo
Technical Plastics has now successfully manufactured capsules using a new
polymer blend developed by Stanelco's subsidiary Adept Polymers Limited working
in conjunction with the recently acquired Biotec Holding GmbH group.

Work is ongoing to bring this new hard-shell capsule technology to market and
Stanelco and Carclo are now seeking to work with third parties to optimise
formulations, ensure regulatory approval (for human and animal consumption) and
develop the route to market, this process is expected to take a reasonable time
to achieve. A "prospectus" is currently being prepared for the attention of
serious third parties. Both the starch-based material and the manufacturing
process offer the prospect of lower unit costs of production than for gelatine
capsules. Starch-based hard-shell capsules also offer greater resilience to
humidity and heat than gelatine and facilitate easy filling - since they are
non-static.

From knowledge of the market, the Company believes that gelatine, an animal
derived material, is becoming less favoured as a material in which to deliver
nutritional supplements and pharmaceuticals to both humans and animals. Gelatine
capsule shells are currently made using a dip moulding process followed by a
slow drying process, which injection moulded starch-based alternatives do not
require. They are ready for filling immediately following manufacture. The only
significant alternative to gelatine currently on the market is HPMC
(hydroxypropyl methyl cellulose), a synthetic material with a significantly
higher cost base than gelatine. We believe that the world market for hard
capsules in significantly larger than that for soft capsules with many billions
of hard capsules produced annually.

Stanelco's subsidiary, Aquasol Limited, filed for patent protection in relation
to this new hardshell capsule in 1999. The patent, which is jointly owned with
Carclo plc, is proceeding to grant in various territories. The design of the
capsule also offers tamper evident and novel dissolution features as well as the
possibility of multi-compartments.

Ian Balchin, CEO of Stanelco said: "This breakthrough has resulted from a
combination of Stanelco's expertise in formulating and blending starch based
materials together with Carclo's expertise in precision injection moulding of
soluble polymers and the design and development expertise of both organisations.
Stanelco's acquisition of Biotec is enabling the manufacture of materials with
significantly lower cost potential than conventional solutions. We look forward
to the prospect of achieving regulatory approval and to entering the wider
market for replacing both gelatine and HPMC with our new products."

Ends

For further information please contact:

Stanelco plc

Ian Balchin, Chief Executive
Stanelco PLC
Tel: +44 (0)2380 867100
Tel: +33 (0)153 65 23 00

News out of an edible starch based capsule developed with Carclo.
cyril

This is excellent news. Another reason why SEO bought Biotec. Before we all get on our high horse, please note the comment:

"Work is ongoing to bring this new hard-shell capsule technology to market and
Stanelco and Carclo are now seeking to work with third parties to optimise
formulations, ensure regulatory approval (for human and animal consumption) and
develop the route to market, this process is expected to take a reasonable time
to achieve."

The last sentence basically means that revenue for this product will take time and won't happen overnight, so don't expect a rapid rise in the SP.

If SEO are involved with Northern Foods then the so called savings of 10m (diff between Ferndale and Northern contracts with ASDA), could be as a result of Greenseal technology. Not bad saving by ASDA if the case.

IMHO

Kong

You must be kidding if you thing Greanseal can save 25% of the price, folks. Get real!

We have no idea what changes in spec. there are in the NF contract from Ferndale's - maybe just less - since NF, although bigger, may have a narrower range of product, to be made up from elsewhere (even Ferndale on a reduced basis, if they call a cease fire).

Seems like Ferndale didn't knuckle under, even though it had the advantage of Greanseal - unwisely it turns out.

Like the new capsule, Niggsy!

sd

kkgb, as i said earlier, i really do hope that the northern foods cotract has something to do with greenseal, but i will wait for confirmation before i get excited. today's rns seems to suggest that ingel is getting back on track, albeit slowly. a long way to go on that yet , if they haven't yet got,

"regulatory approval (for human and animal consumption) "

If SEO are involved in Norther Foods, I doubt that the share price will increase at all as this is part of the "several hundred machines" which is already factored into the share price.

The oily one

Bosley Hi,

Ingel is not involved in the Carlco joint venture capsules, it is between Aquasol and Carlco.

I highlighted this capsule development about a year ago, and the details have been on my website since March, and I said when the Biotec deal came in, that it would help reduce the cost base for those capsules, to a level where Stanelco and Carlco could offer the product to Cardinal Health, bearing in mind the already known connections, and that Stanelco could offer it to them first as a way of compensating for the problems with going forward with Ingel products, as the Carlco capsules are laser welded, there is no RF connection.

Cardinal already know a lot about starch, having been involved in Ingel for a long period of testing, and they could take these capsules to market very quickly, probably much quicker than other manufacturers.

Cheers,
PM

My understanding of Greenseal was it benifited both Asda and supplier,
could it be that Northern where prepared to take a smaller % of the
savings, to win the contract?
cyril

Nice one Cyril :)

Cheers,
PM

Morning all - just back from a week in Norfolk - fantastic weather - did a bit of walking , boating etal - good to see that my return corresponds with a bit of news.

Just trawled through over 300 posts on this thread - mostly irrelevant re the CC - how boring - but one or 2 nice tit bits

A good rns this morning - another bit in the jig saw - presumably these capsules that do not contain animal products will open up the pharmaceutical and vitamin market to all Muslims and Vegetarians who would otherwise refuse to take such products. It could greatly increase the sale of capsule contained drugs and vitamin products. Another great RNS!

Baza

Good news again, this new development may be worth millions in revenue to SEO and Carclo, Carclo (car) is up today on the announcement.

http://www.carclo-ctp.co.uk/

Research Page updated

30) SEO announces.
https://www.moneyam.com/InvestorsRoom/posts.php?tid=7681#lastread

slightly strange, the market reaction to today's announcement, as carclo is up while seo is static. also, there doesn't seem to be any volume.

With a market cap of this region though Bosley, its gonna take a BIG RNS to shift the SP no? I agree I'm excited with today's announcement but as Paul said above, it is kind of in development so money is still a while off... The next movement is surely going to be ASDA machine orders or a Walmart contract.

Hi All,

Hopefully we will see that big name pharma (Cardinal ?) sign a heads of agreement to develop these new capsules, and bprg are sunk again .... LOL !!!!

Also I e-mailed the Northern Foods and Ferndale Foods news to Howard, nothing back from him yet, but I think an RNS will be forthcoming on that front fairly soon, as the next Greenseal and Starpol announcement.

The capsule news will take a while to sink in, but the potential is the same or better than that which drove the price up a few years ago (as per the chart below) when the Ingel announcements came out, so we could see latent buying this week as the news travels around. Also USA buyers might see more potential in the capsules, than UK investors, so keep an eye from 2:30pm onwards, especially if SEO do another excellent Business Wire press release :)

Cheers,
PM