News

Stanelco's share price slipped by 9% to 30p this morning (14 January) after the bioplastics packaging specialist said it would report a loss in its preliminary results, due to be issued on 14 March.

The firm said it had a cash balance of £8m at 31 December 2007, but sales growth had not matched expectations.

Stanelco said "some obstacles" remained to achieving sustainable growth from the bioplastics division, despite "considerable interest" from potential customers and greater "commercial focus" instigated by Paul Law, who became managing director of the division in October 2007.

The firm will install pilot extrusion and testing facilities at its Southampton base during the first quarter of 2008 to help meet the requirements of this developing market.

Growth in the Biotec joint venture with French biodegradable resin producer Sphere has continued, but at a "slower rate" than anticipated, and "satisfactory" progress has been made in resolving "patent challenges".

Stanelco's radio frequency sealing business traded "in line with expectations" and a number of customers had shown an interest in the fibre optic furnace area, the firm added.

Stanelco reported an interim pre-tax loss of £3.47m in the first six months of 2007, despite revenue growing to £3.8m. Its loss before exceptional items was £1.7m, £600,000 lower than in 2006.