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

Play up Pompy

I went to see the Rocks once. Hmmm.

Pompey not doing too badly at the mo...... The Rocks??? You lost me

Aldwickk knows - Bognor Rocks
Or to be formal Bognor Regis Town Football Club

Statement from Stanelco -- re cashflows and joint ventures

Bust ??

Stanelco PLC
17 August 2006

Stanelco PLC
17 August 2006


Stanelco PLC ('Stanelco' or 'the Company')


17 August 2006

Trading update


The Company announced on the 14th July 2006 in its interim results for the six
month period ending 30 April 2006 that its closing cash position at 30 April
2006 was GBP0.3m. The Company started the period with a cash balance of GBP4.4m
and made investments in research and development of GBP0.6m and increased its
levels of stock from GBP2.6m at the year end to GBP3.1m. The Company also
invested GBP1.2m in capital expenditure in the period.

Since the half year end, the Company raised GBP3.7m (net of expenses) by way of
an equity placing in June 2006 of which GBP1.6m was used to meet a stage payment
for the acquisition of Biotec and GBP2.1m was for working capital purposes. Of
that GBP2.1m, GBP2.0m has been used for the ongoing commercialisation of the
Group's technologies and meeting the Group's operational running expenses since
1 May 2006, and GBP0.1m has been used for capital expenditure.


The Company also stated in those interim results that it was considering its
funding requirements and funding options for the next phase of its development.
As at today's date the Company has cash at bank of GBP0.9m with an unused
overdraft facility of GBP0.2m.



The Company estimates that its current cash at bank of GBP0.9m, together with
projected receivables and working capital needs is sufficient to meet its cash
requirements for a further three months in the absence of further funding or new
revenue streams commencing in the period.



Since 2000, Stanelco's business model has transformed from a manufacturer and
supplier of capital goods into an intellectual property company with interests
in markets with significant growth potential, which include sustainable
packaging and environmentally responsible sealing solutions for the packaging
industry.



As indicated in the interim results, in order to enable the Group to move into
the next phase of the commercialisation of its intellectual property portfolio
and to meet its working capital requirements, the Company is currently exploring
all financing options including a public equity issue.



The Company will update the market once any further information is available.



Martin Wagner, Stanelco Chief Executive said:



'While the Company is exploring all of its financing options, it continues to
actively progress the commercialisation of its products.



The Company is in advanced negotiations with a number of potential joint venture
partners in the USA to compound biodegradable resin. This is to meet the
demands currently expressed to Stanelco by major multiple retailers and global
fast food chains. Letters of intent with two of these companies have been
exchanged and the Company believes that these will lead to contracts in the
short term.



We acknowledge that Stanelco has encountered delays in rolling out GREENSEAL to
the market. The delays have primarily resulted from the limitations of the food
packaging industry to allow access to machines to test the technology in a
factory environment. The Board believes that these delays will not impact on
the potential success of the project.'

Did the private emails discuss this?

That is not good news on the cash front. The Asda deal and the letters of intent should make it easier to raise cash, but it is still very bad.
The only bright spot are those letters of intent and an acknowledgment that the timescales were all wrong, for whatever reason.
Perhaps the forecasts they use from now on will be more realistic.
Someone asked, Bust?
Personally I doubt it. As I said, if the position was too precarious, non of the big boys would be talking to them, never mind issuing letters of intent, but it is still very bad.
At least we now know why the redundancies.
Alan

The recipients of those e-mails that i sent will bear me out when I say that they contained a note saying I would not put money into SEO now, nor would I increase my holding.
So that one fell a bit flat.
Alan

The 30% drop seems well overdone to me as the buyers coming in agree, I topped up three of my stocks yesterday I should have held some cash back for this one.

Driver, what did you think of the mail I sent?
Interesting?
Todays RNS bears out the info we had about the delays, anyway. They say it in nicer terms but it means the same.
Alan

I would have thought the 5p+ sp reflected the delays and the lack of news so IMO this drop is an over reaction by the mms who dont know much about the stock. One small bit of good news will see this recover to 5p to 6p IMO thats why I would top up at these prices.

I am concerned by the financial position, so I would not top up in case a large dilution takes place. If, however, the letters of intent become contracts, or the Asda deal finally starts to take off then any bank in the world would support cash flow with short term facilities and, yes, the SP would go north.
The question is, "do you feel lucky? Well, punk. Do ya?"

I've gone all the way down with this one,thinking "it has to be a good price at some stage" so that I can recoup my losses.Contracts of a considerable size from these letters of intent cannot come soon enough for me!!

Al
I always feel lucky but thats easy to say with no cash to put in, am I right in saying they have more cash in the bank than when the sp was at 4p over a year ago and a lot more going on I invested then why would I not now.

Its a fair point, Driver.
Many of us got in when the company had nothing up its sleeve at all, and were happy at that.
I think that we all got over excited, goaded on by the RNS we saw. But you are right. The value looks good, but I would still not be putting any more in, or getting in for the first time with the picture this unclear.
alan

Anyone know when the next payment is due for Biotec?

The timeing of this rns is bizarre.
It's contents (as in shortage of cash) has been known pretty much since the last set of results.
Why release it at this precise moment? and drive the sp down further? why kick yourself when your down?
I've got a hunch.............

Al
4m buys disagree with you punters are not dumping they are buying, thats why I dumped mdy and glad that I did but dont blame me if I am wrong its only my opinion.

Where is every one?

Go on, Tweenie.
Share your hunch. I wont tell anyone.