SEO Stanelco

 

TIDMSEO 
 
RNS Number : 0801C 
Stanelco PLC 
06 November 2009 
 

6 November 2009 
 
 
Stanelco plc ("the Company" or "the Group") 
 
 
Interim Management Statement 
 
 
Stanelco plc issues its interim management statement for the period from 1 
January 2009 to 5 November 2009, as required by the UK Listing Authority's 
Disclosure and Transparency Rules. 
 
 
Highlights 
 
 
  *  Sales to 30 September up 12% to GBP13.4m 
  *  Trading performance in line with Board's expectations: 
  *  Continued growth in bioplastics division driven by interest in adopting 
  sustainable products; increasing applications in new sectors 
  *  Radio frequency applications division sales order pipeline continued to 
  strengthen; growing overseas sales in China and India 
 
  *  Closing cash position at 30 September GBP3.7m, increased by working capital 
  improvements 
  *  Board confident in full year outlook 
 
 
 
Trading Update 
 
 
 
 
Group revenues grew strongly during the nine months to 30 September 2009 and the 
Group's overall trading performance was in line with the Board's expectations. 
 
 
Group revenues increased from GBP12.0m to GBP13.4m in the nine months to 30 
September 2009, an increase of 12% compared with the same period last year. This 
reflected a 29% increase in bioplastic sales made directly by the Company, a 30% 
increase in sales in RF Applications division and an 8% increase in third party 
sales from our joint venture, Biotec. 
 
 
Our cash position at 30 September 2009 was GBP3.7m, strengthened since the half 
year by working capital improvements, including a reduction in stock levels 
following the summer production holiday. 
 
 
Bioplastics division 
 
 
In the Bioplastics division, the sales team that was established last year has 
had a number of successes in growing sales of the Group's existing biodegradable 
products into the market, delivering a 29% increase in the Company's bioplastic 
sales in the nine months to 30 September 2009.The division has broadened its 
customer base with over 40 new customers in 2009 and widened the set of end-use 
applications by a further 17 in the same period. The management remain 
encouraged by the division's opportunities for growth. 
 
 
The product development team continues to work closely with a number of blue 
chip customers and mainstream plastics convertors to develop a widening range of 
biodegradable products that can substitute oil-based plastics.  Whilst some of 
these development paths are still at an early stage, others are poised to 
deliver further growth in the coming months.The development team continues to 
focus on those accounts which we consider could have the maximum growth 
potential. 
 
 
We continue to see strong demand for bioplastic products in the market, driven 
not only by concerns about waste disposal but also by the desire of many large 
corporations to switch to using sustainable resources in key brands. This switch 
to the use of "renewable" materials in advance of legislation is seen as both a 
branding enhancement and a hedge against further oil based price rises. 
  Sectors in which we are gaining traction include packaging, waste disposal, 
paper products, personal care, horticulture and electronics.  The sales 
development work undertaken in the USA over the past year is now also gaining 
momentum. 
 
 
Our joint venture, Biotec, delivered 8% growth in its third party sales for the 
9 months to 30 September 2009  compared with the same period last year. 
 
 
Radio Frequency (RF) applications division 
 
 
In the RF Applications division, the team has been fulfilling a number of 
significant orders that have been won in the nine months to 30 September 2009, 
including the GBP0.3m order for RF furnaces disclosed in our interim results. 
Sales in the period increased by 30% compared with the same period last year 
including growth in both optical fibre furnaces and more general industrial 
equipment in which we are building a portfolio of customers making repeat 
orders.   The sales order pipeline continues to strengthen with a particular 
emphasis on sales in India and China. As a result, a new sales consultant has 
now been appointed for Stanelco dedicated to the Indian market, as this 
territory shows signs of increasing growth in the next few years. 
 
 
 
 
Outlook 
 
 
The Board continues to be confident in the outlook for the full year. Our focus 
continues to be on working closely with customers with the potential to deliver 
increases in revenue, whilst considering acquisition opportunities and other 
paths that could significantly increase the scale of the business and deliver 
shareholder value. 
 
 
 
 
- Ends - 
 
 
For further information please contact: 
 
 
+-----------------------------------------+------------------------------+ 
| Paul Mines, Chief Executive, Stanelco   | Tel: +44 (0) 2380 867100     | 
| plc                                     |                              | 
| Sue Bygrave, Group Finance Director,    |                              | 
| Stanelco plc                            |                              | 
|                                         |                              | 
+-----------------------------------------+------------------------------+ 
| Jonathon Brill/Caroline Stewart,        | Tel: +44 (0) 20 7831 3113    | 
| Financial Dynamics                      |                              | 
+-----------------------------------------+------------------------------+ 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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