Stanelco PLC
16 December 2005
16 December 2005
Stanelco plc ('Stanelco' or 'the Company')
Pre Close Update
Stanelco is today issuing a Pre Close Update prior to reporting its Preliminary
Results to 31st October 2005, which are scheduled to be released in February
2006.
GREENSEAL
Stanelco has made significant progress in the development and commercialisation
of its GREENSEAL technology.
We are currently working with ASDA and four of its key suppliers to fulfil the
initial stage of the ASDA contract. Current potential placements are expected
to lead to orders in excess of 50 conversions with one supplier to ASDA.
Another supplier is presently indicating a requirement for another 30 machines.
In order to avoid suppliers having to shut off machines for retrofit during the
busy Christmas period and to overcome any possible delays, the Company has
acquired several MAP (Modified Atmosphere Packaging) machines to convert to
operate GREENSEAL technology. These machines will be available to substitute
suppliers' machines in production, removing any obstacles of production being
periodically offline.
In addition, the Company is making significant progress with a number of OEM's
to adopt GREENSEAL as an option. This is likely to lead to further opportunities
of deliveries in parallel to the retro fit programme with ASDA.
Interest in the GREENSEAL product remains high. Outside the UK, the Company
remains in active negotiation with other major supermarket chains in both the US
and Continental Europe and it is hoped the results of these discussions will
impact the current financial year. The first US specification machines are now
on their way to the United States to our partners Advanced Technologies.
Biotec
Sales of Biotec materials (Biodegradable, compostible and edible polymers based
upon starch) are continuing to both SPhere (formerly SP Metal) and other
customers. The relationship with SPhere is working well. We are on schedule to
substantially increase in 2006 the production capacity of these materials -
including Starpol to 20,000 tonnes by early 2007.
In the US we have experienced a great appetite for Biotec products and are now
in discussions with a number of major US companies across a range of consumer
sectors on both Biotec packaging alone as well as in conjunction with the
GREENSEAL product. Sustainability is increasingly becoming a key consideration
for US companies as they look to reduce the use of oil based products.
Pressure from environmental groups on the use of plastic is coming under
increasing scrutiny by Governments. The recent announcement in France that
plastic bags will be banned by 2010 has both demonstrated the potential value of
the Biotec acquisition and at the same time opened up this market opportunity
for us. We continue to work on a full range of biodegradable materials to
replace plastics at the same or lower cost.
Welsh Grant Funding
We are pleased to announce that we have received a substantial offer of Regional
Selective Assistance funding in relation to a proposed production and R&D
facility in Blaenau Gwent. The offer of funding will allow Stanelco to invest in
creating a c.£3m production and materials development facility based upon
Biotec's technologies for the primary purpose of substituting conventional
plastic for packaging and other applications with biodegradable alternatives
from replenishable sources such as starch.
Cigarette Filters
We announced our intention to dispose of our biodegradable starch-based
cigarette filter technology acquired through the Biotec joint venture.
Rothschild have been appointed to seek out interested parties and we expect this
process to take a minimum of 6 months. The Board believes a successful sale of
this technology should create significant value for shareholders.
Quantum Finish
The launch in Europe of Reckitt Benckiser's new automatic dishwashing product
Finish Quantum (R) in addition to their increasing sales of Electrasol Gelpacs
(R) in the same segment in the North American market is expected to contribute
towards a growing royalty stream through our Aquasol subsidiary which
contributed technology towards these products.
ELECTRASOL, GELPACS, FINISH, QUANTUM, are trade marks of Reckitt Benckiser plc
(RB.L)
Frogpack
A number of the distribution and manufacturing deals for Frogpack, (innovative
protective transit packaging), have been restructured and we are now seeing an
increase in the number of leads to sell FrogPack products.
Carclo
Stanelco jointly owns a patent with Carclo plc for injection moulded water
soluble capsules for drug delivery and dietary supplements. We have made
encouraging progress in the last few months with this technology. We are working
closely with a customer who intends to use the technology in veterinary
applications. High level discussions are underway with major drug delivery
companies on the human application of the technology.
Conclusion
The current year has seen steady progress on a number of fronts. The Board
believes that the Company will make further progress in 2006 and is increasingly
well positioned to exploit its market leading technology and IP.
- Ends -
For further information, please contact:
Martin Wagner, Chief Executive
Stanelco PLC
Tel: +44 (0)2380 867 100
Jonathon Brill/Billy Clegg
Financial Dynamics
Tel: +44 (0)20 7831 3113
About Stanelco plc
The Stanelco Group of companies (the Group) has brought together expertise in
radio frequency (RF) technology, RF applications and biodegradable material
sciences to create a revolutionary range of packaging technologies.
Stanelco's philosophy is that new products and processes must offer solutions
and applications which:
• give higher added value,
• are greener, more environmentally sustainable than those they replace and
• have protectable intellectual property rights.
Stanelco will develop the products and processes to a demonstration stage and
then work with partners in order to reach the markets; and under these
circumstances Stanelco will usually seek to license its technology. Stanelco
invests considerable time and resources in ensuring its technologies are
protected via layers of patents wherever possible.
In this way Stanelco believes it can minimise commercial risk and preserve the
highest value for shareholders.
The products offering the prospect of near term revenue generation are being
given priority over the Group's resources.
Stanelco was founded in 1953 and is a world leader in the development of radio
frequency technologies for processing polymers for edible and packaging
applications and the design and manufacture of optical fibre technology,
induction heating and dielectric welding equipment. Stanelco's current
developments include GREENSEAL Food tray lidding technology, STARPOL (starch /
pva blended material), STARPOL 2000 (highly functional, low cost biodegradable
packaging material with food contact approvals) FrogPack high impact low cost
packaging format, CradleWrap range of biodegradable air cushion packaging,
Soluble tape, 100% water-soluble films and adhesives, Biodegradable Airbag (void
fill) packaging, edible hard-shell capsule technology, water-soluble detergent
capsules, edible sachets and waste packing.
GREENSEAL, STARPOL, FrogPack and CradleWrap are all trademarks of the Stanelco
plc group.
This information is provided by RNS
The company news service from the London Stock Exchange
*A Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient:
Obtains access to the information in a personal capacity;
Is not required to be regulated or supervised by a body concerned with the regulation or supervision of investment or financial services;
Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body;
Does not currently act in any capacity as an investment adviser, whether or not they have at some time been qualified to do so;
Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
Please note, this site uses cookies. Some of the cookies are essential for parts of the site to operate and have already been set. You may delete and block all cookies from this site, but if you do, parts of the site may not work. To find out more about the cookies used on Investegate and how you can manage them, see our Privacy and Cookie Policy
To continue using Investegate, please confirm that you are a private investor as well as agreeing to our Privacy and Cookie Policy & Terms.