Stanelco Share Discussion Threads

[wolterix] 12/5/2010 10:59

I saw that SirM

Doc, Doc, Doc

I think PM has tried to play a glass bead game, and has found out he can't swim

all unfortunate, particularly with a litigation hungry main competitor in the mix too

but they've been heavily renumerated amongst all this...

[sirmark] 12/5/2010 10:55

STANELCO
New fund-raising to drive bioplastic sales / Increased pretax loss despite higher revenues
Sustainable packaging developer Stanelco (Southampton / UK; www.stanelco.co.uk) made a pretax loss of GBP 3.6m (EUR 4.1m) in the year to 31 December 2009. This was up from GBP 0.5m in 2008 even though 2009 group revenue increased 21% to GBP 17.5m. Operationally, said an upbeat chief executive officer Paul Mines, it had been a strong year for Stanelco with over 20% growth in both its divisions, Biome BioPlastics and RF Applications. Biome made a profit from operations of GBP 0.5m before the legal costs. RF Applications is now profitable with, reportedly, a very strong order pipeline.

"2009 was another year of sales growth and reducing operating loss," confirmed Mines. "Our strategy to build a leading bioplastics business is maturing and accelerating." To further its growth plans, Stanelco plans a GBP 3.5m (EUR 4.0) fund-raising from investors later this month. This will support the continued development of bioplastics products and the group's market position with a view to achieving commercial and technical leadership.
12.05.2010 PIE [216144]
Published on 12.05.2010

[the_doctor] 12/5/2010 10:55

'If co.s are willing to fund SEO alone'

read IF as 'in the event that the placing is done' grax

[the_doctor] 12/5/2010 10:52

'whichever venture capitalist has been approached, has simply said 'no, no way!'
why?'

Consider when the acquisition was looked at - was it in the middle of the crunch?
Perhaps the co.s couldnt agree on terms?
Perhaps it wasnt possible to know about funding until the whole idea had been put together properly?
How far along was it all - was it just a cursory glance?
Has the M&A idea totally fallen through?

etc. etc.



'What is the money for?'

You still dont get it?! They dont have enough cash! It isnt just to build fancy new offices or something like that.
They need more to continue the trend of growth and get to sustainability.
It appears to have a chance of working, just things have gone more slowly than they hoped.

'I can understand people feeling as though they have no option, this is the intention from the company.'

Your other option grax is that the company is too weak to get anywhere, it has to sell off assets, weakening its position further and well, you lose everything!

[grax] 12/5/2010 10:46

doc
'If co.s are willing to fund SEO alone, then funding a better, larger company would perhaps be more feasible?'

THEY AREN'T!!! that is why we are here for goodness sake.

You are taking about an ideology as opposed to the reality.

[wolterix] 12/5/2010 10:44

'no, no way' is the 'polite' version btw....:)

[grax] 12/5/2010 10:44

What is the money for?

If the money was for a specific purpose [much like the greenseal scam last time we chipped in]that they could clearly demonstrate would increase revenue etc then it would have merit.

In actual fact there is no specific purpose.It is just to have the money and save the FSA monthly reporting hassle and to save a job down the road [they already had the mechanics in place in preparation for the acquisition].

The realities are that if they get the cash call away everyone will be back where they were except with a smaller, diluted sp, waiting on SEO being able to close a deal - this has been the position for 3 years.

The only reason some PI contact is going on now is to get the money in.As soon as it goes through, if it does, it will be back to the silence we have had for 3 years.



I can understand people feeling as though they have no option, this is the intention from the company.To use strong arm tactics to pressurise people into taking up the offer but there is no specific reason that will generate anything other than same old,same old.

[wolterix] 12/5/2010 10:43

Doc - you have to understand what PM's cv is historically... experienced in M&A

I can see what you're driving at, but whichever venture capitalist has been approached, has simply said 'no, no way!'

why?

[the_doctor] 12/5/2010 10:39

wolterix
The idea is that you take two companies pushing towards profitability and you get one that's either profitable, or close than the two individual parts would have been.

A merger would be more likely. If co.s are willing to fund SEO alone, then funding a better, larger company would perhaps be more feasible?

[bulgarianpropertydoteudotcom] 12/5/2010 10:36

If you had huge growth projectiions based on sustainable market growth backed up by imminent orders then isn't 3.5mil a stage payment bank loan?

[wolterix] 12/5/2010 10:36

I think it's been a hefty distraction (with hindsight, of course) that's ended up with the company now in a practically terminal position...

[wolterix] 12/5/2010 10:34

I do think that SEO could make a decent acquisition.

tried, failed... and here we are

two years down the line (if they haven't gone under) and profits are coming in, then sure, try again

I'm not sure, as a loss making company, how you can expect to be 'given funds' of 10's of £millions to buy another company?

[the_doctor] 12/5/2010 10:31

Cheers eaj

Given that corporate costs could be cut out, with a trend of growth in the RF and bioplastics businesses, I do think that SEO could make a decent acquisition.

As a stand alone business however, it's struggling. I've not yet projected out revenue, earnings and cash flow. It may be that the funds raised will be good enough to get to, or within reach of sustainability?
But M&A still represents a means of reducing the proportion of revenue going on admin.

[grax] 12/5/2010 10:19

Check your dates first eaj.

No more funds? why's that? have you lost a chunk on an investment that you thought was sure fire hit and looked at through rose tinted specs only to suffer a huge loss?

I know the feeling.

[bulgarianpropertydoteudotcom] 12/5/2010 10:18

Any body else think it would be cheaper now for novamont to buy seo it would be cheaper than court cases and appeals? plus you get some pretty good new products, sell the rest (RF etc) off to some indian co and deals a good un.

[eajxg19] 12/5/2010 10:15

the_doctor, Can I say what a breath of fresh air your are here and may it continue. I concur with all you say. I would be adding if I had more funds. Long term investment for me, but relatively new compared to some. I have nothing to add and nothing more to say here. Lets see where we are in 12 months.

[wolterix] 12/5/2010 10:02

lol, you go for it sunshine!

[grax] 12/5/2010 10:01

Like those

[grax] 12/5/2010 10:01

Oh, and DJ

I like continuous posts

[grax] 12/5/2010 10:00

'Moreover, a fundraising was pretty much guaranteed as soon as the crunch slowed things down'

crunch slowed things down? Surely not? for three years the revenue has been in-line with expectations and increasing.You're countering your own logic before I get the chance.

Perhaps you ought to look into SEO's outlook before taking such an uninformed position with such certainty.

[grax] 12/5/2010 09:56

Just parking this here so I know where to find it.

the_doctor - 12 May'10 - 09:30 - 21246 of 21253


wolterix
To be honest, I've not looked into SEO's outlook enough

[grax] 12/5/2010 09:54

Right on cue!



the_doctor - 12 May'10 - 09:30 - 21246 of 21253


wolterix
To be honest, I've not looked into SEO's outlook enough



....and now you are an expert again.

[the_doctor] 12/5/2010 09:51

Cheers Dr J.

grax
'No it wasn't otherwise they wouldn't be needing more money once again'

That's where you're going so wrong!
Fundraisings can be in a plan.
Moreover, a fundraising was pretty much guaranteed as soon as the crunch slowed things down. Since then, however, if they've been doing as well as expected/hoped, then that's good.

It seems you read 'good progress' or 'in-line' as being that no cash call would be needed. That of course was never the case. The sooner you understand that, the sooner you'll be able to think more sensibly about the company

Good luck.

[grax] 12/5/2010 09:45

Uncanny
doc disappears and DJ appears!
Spouting the same rubbish.
Got me on filter yet knows what I've said.Another with a filter button that doesn't quite work.


'Most people don't look for confrontation.' Well DJ, that's not quite true is it?
Weren't you the one who handed out quite a bit of confrontational tosh and then had to back pedal furiously at Langbar?

You made a mockery of yourself there with your shameless pleading about not being taken to court because you were on benefits and you didn't mean to be nasty really guv,honest!

I'll try and look out your posts because they will show you up for what you are.

Tell me about these 'reasonable folk' that post here.Most of them express dissatisfaction yet you read this as support.

Now, don't forget to log out of DJ and log back in as doc.