Preliminary Results

Stanelco PLC
27 April 2001


STANELCO PLC

EMBARGOED FOR 07H30 ON FRIDAY 27 APRIL 2001


PRELIMINARY ANNOUNCEMENT OF UNAUDITED RESULTS FOR THE YEAR ENDED 31 OCTOBER
2000

CHAIRMAN'S STATEMENT

Results

I am pleased to report that the group continued to build upon the foundations
of growth that were laid down last year, turnover increased 45 per cent and
profits increased as set out below:

                                        Year to 31 October  Year to 31 October
                                        2000                1999
                                        £'000               £'000

Turnover                                3,602               2,477

Trading Profit - before exceptional     735                 326
item
Exceptional research & development      (380)               -
expenditure
Holding company costs                   (72)                (31)
Net interest receivable/(payable)       16                  (17)

Profit on ordinary activities before    299                 278
taxation
Taxation                                (55)                (69)

Retained profit for the year            244                 209


I am pleased to welcome the appointment of Ian Balchin as full time chief
executive of the group.  Ian joins us with an impressive track record as a
team player leading the growth and development of technology businesses.  I
would also like to thank Ian Davis for his sterling work overseeing the
building of business foundations that enable us to accelerate the development
of the group.  Ian Davis continues his active involvement as an executive
director.

Future prospects

Sales enquiries continue to remain strong and the group has an outstanding
order book of in excess of £2m.  Strongest growth looks set to occur in
furnace sales.  The introduction of new trading terms should see the group's
consumables business hold steady during the coming year.

Since the end of the financial year we have set up a new subsidiary, InGel
Technologies Limited, as a vehicle to manage the commercial introduction of
certain of our patented technologies with applications in the healthcare
market.  We anticipate that if this technology demonstrates production-scale
success then it is likely to generate additional revenue streams to the group
which could include licensing, equipment supply and further development work.

The group continues to actively consider appropriate acquisitions.

Christopher Mills
Chairman
26 April 2001


CHIEF EXECUTIVE'S STATEMENT

Our aim is to continue to develop the Stanelco group into a valuable
technology business.....

The nucleus of our business is the supply of equipment and services to
manufacturers of optical fibre.  Our focus in this market is to be the leading
supplier of high technology 'furnaces' required to heat special glasses so
that they can be pulled into fibre.  Our heating technology sustains
temperatures in excess of 2000 degrees centigrade for hundreds of hours
enabling optical fibre to be produced at rates exceeding one kilometre per
minute with dimensional tolerances of one ten thousandth of a millimetre.

During the year we extended our product range, successfully introducing
further new graphite based systems to complement our existing zirconia based
systems.  This is reflected in our forward order book.  We now offer the full
range of industry-accepted systems.

Our plans for 2001 are both to build upon the current business and begin to
diversify into other technological businesses.

1.     Low risk extensions to existing businesses

       This includes the introduction of new and improved products for the      
       existing customer base.  In addition it includes a number of internal    
       projects to optimise existing resources, such as factory floor space,    
       work methods, procurement, and training.

2.     Diversification into new markets

a)     Based upon core competencies

       We shall continue to review business opportunities enabling our core
       competencies to be applied to new markets.  This includes the novel use  
       of our heating technology for certain healthcare applications.  Our work 
       in this field with AEA Technology plc has already led to patent          
       applications. Negotiations with potential licensees have reached an      
       advanced stage with one organisation currently holding an option to an   
       exclusive licence, on terms to be agreed.  The economics of the          
       technology have yet to be demonstrated and whilst £130,000 has been      
       expended its value has yet to be determined and so such cost has been    
       written off in full.  We expect to be able to understand the value of the
       technology during 2001, following trials.  In anticipation of
       positive results we have established InGel Technologies Limited (a wholly
       owned subsidiary) to manage the commercial introduction of the           
       technology. It is our intention to transfer the intellectual property    
       rights and necessary resources to InGel prior to agreeing any licence.

b)     In new areas

       During a time of high expectation, the company decided to commit         
       expenditure investigating various ventures with a view to establishing an
       e-commerce marketplace for the distribution of goods, named LogistiGO.   
       The new marketplace aims to match haulage requirements with haulage      
       carriers, thus optimising the capacity of the carriers on all routes.    
       The overall benefits include lower transportation costs and reduced      
       environmental impact.  Whilst Stanelco believes that the business concept
       is sound we decided not to provide second round funding to this venture, 
       since we now have other opportunities to invest in areas of both lower   
       risk and higher return.  It is our view that the viability of the venture
       is at risk and as a precaution we have decided to write down the entire  
       £250,000 expended rather than carry it on the balance sheet.  Currently, 
       there are no plans to explore other opportunities of this kind and no    
       start-up costs are being carried in the balance sheet.

       Given the size of expenditure (£380,000) incurred in diversifying into   
       new markets these costs have been highlighted separately in the profit   
       and loss account.

3.     Start-ups, spinouts and acquisitions

       When the risk to the group from taking on a new business activity is
       relatively low, compared to the return, we intend to start up, spin out  
       and acquire such new technology businesses.  There are a number of such
       opportunities currently being progressed.  Entrepreneurs are invited to
       consider working with Stanelco as a possible vehicle for enabling their
       venture to happen.

Investor Relations

The group receives many requests for information from shareholders and those
contemplating investment.  In direct response we are taking a number of
actions to improve the availability of information on the company.  Share
price details are now published in the Evening Standard and Financial Times
and a new website has been launched to coincide with these results,
www.stanelcoplc.com.

I would particularly like to thank our employees for rising to the challenge
of growing our business and creating such a positive working environment.  We
look forward to reporting our further progress to shareholders through the
year.

Ian Balchin
Chief Executive
26 April 2001


CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 OCTOBER 2000
                                                              Unaudited Audited
                                                        Note  2000      1999
                                                              £'000     £'000

Turnover                                                      3,602     2,477

Cost of sales                                                 (1,904)   (1,309)

Gross profit                                                  1,698     1,168

Distribution costs                                            (27)      (11)
Administrative expenses:  Research and development      1         (380)       -
                                                Other           (1,008)   (862)

                                                              (1,388)   (862)

Operating profit                                              283       295

Interest receivable and similar income                        20        3
Interest payable and similar charges                          (4)       (20)

Profit on ordinary activities before taxation                 299       278

Taxation                                                      (55)      (69)
Retained profit for the year                                  244       209

The calculation of earnings per share is based on the
profit after tax for the year of £244,000 (year to 31
October 1999 - profit £209,000) and 666,224,850
ordinary shares in issue
Basic earnings per share - pence                              0.037     0.031


All transactions arise from continuing operations.

All recognised gains and losses are included in the profit and loss account.


CONSOLIDATED BALANCE SHEET AT 31 OCTOBER 2000

                                                       Unaudited     Audited
                                                      2000   2000  1999   1999
                                                      £'000  £'000 £'000  £'000
Fixed assets
Tangible assets                                              242          147

Current assets
Stock                                                 442          182
Debtors                                               453          804
Cash at bank and in hand                              551          274
                                                      1,446        1,260
Creditors: amounts falling due within one year        (1,167)       (1,125)

Net current assets                                           279          135

Total assets less current liabilities                        521          282

Creditors: amounts falling due after more than               (3)          (11)
one year

Provisions for liabilities and charges                       (24)         (21)
                                                             494          250

Capital and reserves
Called up share capital                                      666          666
Profit and loss account                                      (172)        (416)
Equity shareholders' funds                                   494          250


CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2000

                                                              Unaudited Audited
                                                        Note  2000      1999
                                                              £'000     £'000

Net cash inflow from operating activities               2     719       403

Returns on investments and servicing of finance
Interest received                                             20        3
Interest paid                                                 (1)       (16)
Finance lease interest paid                                   (3)       (4)
Net cash inflow/(outflow) from returns on investments         16        (17)
and servicing of finance

Taxation
Corporation tax paid                                          (61)      (4)

Capital expenditure and financial investment
Sale of tangible fixed assets                                 4         3
Purchase of tangible fixed assets                             (177)     (42)
Net cash (outflow) from capital expenditure and               (173)     (39)
financial investment

Financing
Repayment of borrowing                                        (90)      (105)
Capital element of finance lease rentals                      (19)      (24)
Net cash (outflow) from financing                             (109)     (129)

Increase in cash                                              392       214


1      EXCEPTIONAL ITEMS
                                                                   2000  1999
                                                                   £'000 £'000

Research and development on diversification into new markets
consists of:
 Developing heat technology for healthcare applications            130   -
 Investigating potential e-commerce opportunities                  250   -
                                                                   380   -


Further details in respect of both of the above items are referred to in the
chairman's and chief executive's statements.



2      RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW FROM OPERATING
       ACTIVITIES
                                                           2000      1999
                                                           £'000     £'000

Operating profit                                           283       295
Depreciation of tangible fixed assets                      70        43
Loss on sale of tangible fixed assets                      8         6
(Increase) in stocks                                       (260)     (61)
Decrease/(increase) in debtors                             351       (339)
Increase in creditors                                      255       447
Provision for liabilities and charges                      12        12
Net cash inflow from operating activities                  719       403


3      DIVIDENDS

The directors are not proposing the payment of a dividend.


4      REPORT AND FINANCIAL STATEMENTS

The information relating to the year ended 31 October 2000 is unaudited and
has been extracted from draft accounts on which the auditors expect to issue
an unqualified opinion.

The information relating to the year ended 31 October 1999 is extracted from
the audited accounts that have been filed at Companies House and on which the
auditors issued an unqualified opinion.

The above financial information does not constitute statutory accounts within
the meaning of Section 240 of the Companies Act 1985.


5      ANNUAL GENERAL MEETING

The Annual General Meeting will be held at Oliver House, 22 East Barnet Road,
New Barnet, Hertfordshire, EN4 8RN, on 15 June 2001 at 10.00 am.