Interim Results

STANELCO PLC
20 July 1999

CHAIRMAN'S STATEMENT AND
INTERIM REPORT

UNAUDITED CONSOLIDATED
ACCOUNTS
FOR THE SIX MONTHS ENDED
30 APRIL 1999

RESULTS

Stanelco Fibre Optics Limited is now the principal trading company and
together with Stanelco Products Limited achieved a turnover of £1,011,000 (30
April 1998: £890,000) resulting in a consolidated operating profit at
subsidiary, level of £76,000 compared to a loss of £51,000 for the comparable
period in 1998.  Three fibre optic furnace systems have been delivered to
Lucent (Denmark) and Lucent (US) with strong enquiries having been received for
further systems.  The 'Emabond Process' is proving successful with eight kettle
systems sold.

The holding company incurred costs of £12,000 (30 April 1998: £7,000) thereby
resulting in a group operating profit of £64,000 (30 April 1998: loss £58,000).
After interest and taxation charges the board is pleased to announce a profit
for the first six months of the year of £45,000 (30 April 1998: loss £61,000).

FUTURE PROSPECTS

The current order book is in excess of £500,000, reflecting high levels of
Zirconia tube orders.

The immediate and long term future in Fibre Optics is very promising with
development work already performed showing rewards with the three systems
referred to above.  The indications are that the USA market will convert more of
their processes to the Stanelco system.

There are strong prospects from the 'Emabond Process' the domestic appliance
field and motor industry.

The group continues to search actively for appropriate acquisition targets.

DIVIDEND

No interim dividend is to be declared and the Board will not declare a dividend
for the financial period as a whole.

YEAR 2000 COMPLIANCE

The year 2000 is a potentially disruptive risk to almost all businesses due to
the possible inability of computer programs and data files containing a two
digit year-format to distinguish the appropriate year at the turn of the
century.  The Group is taking this risk very seriously and has adopted a
systematic phased process to actively address the Year 2000 issues covering the
full production process, installed machines and the supporting infrastructure.

The different stages have now been completed and where appropriate confirmation
has been received from third parties.

Generally, the Group uses widely available packaged software solutions from
substantial software companies, rather than bespoke software programmes.  As
part of a continuous investment programme, these are constantly updated to
provide current versions for the Group's use.  The Group does not run any
bespoke programs which contain date-critical applications.  Accordingly, barring
unforeseen circumstances, the Directors do not anticipate that any significant
external incremental costs will be incurred in order to address compliance with
the year 2000 issue.  In the opinion of the Directors, the Group will have taken
all practical and reasonable steps to reduce or eliminate any exposure to the
risk from the failure of third parties with which it trades to combat the risks
posed by the year 2000.

BY ORDER OF THE BOARD

Christopher H B Mills (Chairman)       9 July 1999


STANELCO PLC
INTERIM REPORT

UNAUDITED CONSOLIDATED RESULTS: SUMMARISED PROFIT AND LOSS ACCOUNT

For the six months ended 30 APRIL 1999
          
                                         Six months   Six months         Year
                                              ended        ended        ended
                                           30 April     30 April   31 October
                                               1999         1998         1998
                                              £'000        £'000        £'000

Turnover                                      1,011          890        1,998

Operating profit/(loss)                          64          (58)          24

Interest payable (net)                           (1)          (3)          (8)

Profit/(loss) on ordinary activities             63          (61)          16
     before taxation

Taxation                                        (18)           -           (9)

Retained profit/(loss) on ordinary               45          (61)           7
     activities after taxation

Profit/(loss) per share                      0.0068      (0.0092)      0.0010 

Notes

1    The earnings per share is based on an attributable profit of £45,000 (1998:
     loss £61,000) and on the number of ordinary shares in issue during the
     period of 666,224,850 (1998: 666,224,850).

2    The figures for the twelve months ended 31 October 1998 are an abridged
     statement of the full Group Accounts for that year which have been
     delivered to the Registrar of Companies and on which the auditors made an
     unqualified report and did not contain a statement under Section 237 of the
     Companies Act 1985.

     The principal accounting policies of the group have remained unchanged from
     those set out in the group's 1998 annual report and financial statements.
     The financial information set out in this interim report does not
     constitute statutory accounts as defined in section 240 of the Companies
     Act 1985.

     The interim financial information in this report has been neither
     audited nor reviewed by the company's auditors.

3.   Copies of this statement are being sent to all shareholders today and will
     be available to the public at the company's registered office.


STANELCO PLC
INTERIM REPORT

UNAUDITED CONSOLIDATED BALANCE SHEET AT 30 APRIL 1999

                                    At 30 April 1999       At 31 October 1998
                                   £'000        £'000     £'000        £'000
Fixed assets
Tangible assets                                   138                    145

Current assets
Stocks                               154                     121
Debtors                              484                     465
Cash at bank and in hand               -                       -
     
                                     638                     586
Creditors: amounts failing due
within one year                     (493)                   (469)

Net current assets                                145                    117

Total assets less current liabilities             283                    262

Creditors: amounts falling due after
more than one year                               (185)                  (212)

Provision for liabilities and charges
Deferred taxation                                 (12)                    (9)

                                                   86                     41

Capital and reserves
Called up share capital                           666                    666
Profit and loss account                          (580)                  (625)

Shareholders' funds                                86                     41


STANELCO PLC
INTERIM REPORT

UNAUDITED CONSOLIDATED CASH FLOW STATEMENT

For the six months ended 30 APRIL 1999

                                        Note  Six months  Six Months       Year
                                                   ended       ended      ended
                                                30 April    30 April 31 October
                                                    1999        1998       1998
                                                   £'000       £'000      £'000
Net cash inflow from
operating operating activities             1          78          31         57

Returns on investments and servicing
  of finance
Interest received                                      1           -          1
Interest paid                                         (2)         (2)        (5)
Finance lease interest paid                            -          (1)        (4)

Net cash (outflow) from returns on
investments and servicing of finance                  (1)         (3)        (8)
 
Taxation
Corporation tax received                               -           -          -

Capital expenditure and Financial investment
Sale of tangible fixed assets                          -           3          5
Purchase of tangible fixed assets                     (7)         (8)       (31)

Net cash (outflow) from capital expenditure
and financial investment                              (7)         (5)       (26)

Financing
Repayments of borrowing                              (15)          -          -
Capital element of finance lease rentals             (12)         (5)       (24)

Net cash outflow from financing                      (27)         (5)       (24)

Increase/(decrease) in cash                  2        43          18         (1)


STANELCO PLC 
INTERIM REPORT 
NOTES TO THE UNAUDITED CONSOLIDATED CASH FLOW STATEMENT

For the six months ended 30 APRIL 1999

1   RECONCILIATION OF OPERATING PROFITI(LOSS) TO NET CASH INFLOW FROM OPERATING
    ACTIVITIES

                                              Six months Six months        Year
                                                   ended      ended       ended
                                                30 April   30 April  31 October
                                                    1999       1998        1998
                                                   £'000      £'000       £'000

Operating profit/(loss)                               64        (58)         24
Depreciation of tangible assets                       14         12          23
(Profit)/loss on disposal of tangible assets           -         (1)          7
(Increase)/decrease in stocks                        (33)        14         120
Decrease/(increase) in debtors                       (19)       313         108
(Decrease)/increase in creditors due within one year  52       (249)       (225)

Net cash inflow from operating activities             78         31          57

2    RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT

                                              Six months  Six months        Year
                                                   ended       ended       ended
                                                30 April    30 April  31 October
                                                    1999        1998        1998
                                                   £'000       £'000       £'000

Increase/(decrease) in cash in the period/year        43          18         (1)
Cash outflow from financing                           27           5         24

Change in net debt resulting from cash flows          70          23         23
Inception of finance leases                            -         (27)       (32)
                                                      70          (4)        (9)

Movement in net debt in the period/year
Net debt at beginning of period/year                (291)       (282)      (282)

Net debt at end of period/year                      (221)       (286)      (291)


3    ANALYSIS OF CHANGES IN NET DEBT

                                       At                                  At
                               1 November                Non-cash    30 April
                                     1998   Cash flow   movements        1999
                                    £'000       £'000       £'000       £'000

Cash in hand and at bank                -           -           -           -
Overdrafts                            (55)         43           -         (12)
                
                                      (55)         43           -         (12)

Debt                                 (195)         15           -        (180)
Finance leases                        (41)         12           -         (29)

                                     (291)         70           -        (221)


                                       At                                  At
                               1 November                Non-cash    30 April
                                     1997   Cash flow   movements        1998
                                    £'000       £'000       £'000       £'000

Cash in hand and at bank                1          20           -          21
Overdrafts                            (55)         (2)          -         (57)

                                      (54)         18           -         (36)

Debt                                 (195)          -           -        (195)
Finance leases                        (33)          5         (27)        (55)

                                     (282)         23         (27)       (286)