Stanelco '08 loss narrows, considers acquisitions

(Reuters) - Stanelco, British maker of biodegradable packaging technology, posted a narrower loss for 2008 helped by a good performance at its Biotec unit and higher sales of bioplastics made directly by the company.

The company said it planned to broaden its product portfolio and widen areas of business.

For the year ended December 31, the company posted a pretax loss of 0.5 million pounds ($0.7 million), compared with 5.0 million pounds a year ago.

Revenue surged 84 percent to 14.8 million pounds.

The company said the Biotec unit, a joint venture with SPhere SA, that makes biodegradable products from its base in Germany, added 5 million pounds to its revenue for the year.

Sales of bioplastics increased by 1.4 million pounds, up 385 percent from the previous year, Stanelco said.

"Whilst pushing forward with organic growth, the board continues to consider acquisition opportunities which would allow it to take significant steps forward in scale," Chairman John Standen said in a statement.

Stanelco shares closed at 0.59 pence on Wednesday.

($1=.6876 POUND)

(Reporting by Tresa Sherin Morera in Bangalore; Editing by Gopakumar Warrier)