Biome Tech Regulatory News (BIOM)

29 May 2007 07:02

Stanelco PLC29 May 2007 29th May 2007 Stanelco plc("Stanelco" or "the Company") Trading Statement Following the appointment of Paul Mines as Chief Executive Officer of theCompany on 16 April 2007, a preliminary review of the business operations of theCompany has been conducted. The results of that review were presented to theBoard on 25 May 2007. The principal conclusions from the review are as follows: 1. Biotec Biotec, which is owned 50 per cent. by Stanelco and 50 per cent. by SPhere S.A.,sells virtually all of its biopolymer output to its shareholders. In the currentfinancial year to 31 December 2007, it was envisaged that each shareholder wouldtake approximately half of the production capacity of biopolymer and Biotec hasprepared itself for that eventuality. However, the Stanelco sales and productpipeline is currently nascent and is expected to be developed over the course ofthe next 18 months or so. Given this, and other strategic constraints, the plans to manufacture Biotecmaterials in the USA have been placed on hold. In addition, the Board has become aware of certain patent challenges lodgedagainst some of Biotec's products and is currently evaluating the significanceof these challenges. 2. Radio Frequency (RF) Applications The Greenseal trials have now been concluded. Unfortunately, the Board'sassessment of the result of these trials is that they are unlikely to lead toany commercial sales for this particular application. Underlying trading at theRF division remains steady. 3. Aquasol An agreement has been reached to sell certain assets of Adept to MonoSol AFLimited for approximately £494,000 and this may lead to the possible futurelicensing of Aquasol's FrogMat intellectual property. Shareholders will be keptfully informed of further developments in this regard. Development continues to commercialise other Aquasol intellectual property. 4. Cash flow Our cash balance at 30 April 2007 was approximately £11 million. We arecommitted to ensure that these funds are deployed successfully towards a cashpositive trading position. Accordingly, the cost base of the business is beingkept under review and further cost reductions are envisaged. Trading expectations for this financial year will be adversely affected by theabove. The Board remains encouraged by market trends and customer interest in theCompany's portfolio of products and intellectual property and is developing itsplans in the short term to deliver shareholder value from these assets over themedium term. A full trading update will be provided with the half year results. For further information please contact: Financial DynamicsJonathon Brill/Caroline StewartTel: +44 (0) 20 7831 3113 This information is provided by RNS The company news service from the London Stock Exchange