TEG smells ‘successful’ year
Article Date: Feb 05 2010
TEG Group says regulatory requirements are moving in favour of its ‘in vessel composting’ technology
Organic composting specialist TEG Group says it expects 2009 to have been ‘the most successful year in its history’.
The Preston-based company, which develops and operates organic composting and energy plants using its ‘Silo Cage’ process, says the second half of last year brought ‘significant revenue growth’, despite problems caused by ‘unusually adverse weather conditions’ towards the end of the year. In an upbeat trading statement, AIM-quoted TEG, which lost £1.6 million in 2008 and turned a £535,000 loss into a £50,000 profit in the first half of last year, suggests the full-year outcome will be in line with expectations.
Steered by chief executive Michael Fishwick, the company says trading at its own facilities, including Carleton Rode in Norfolk, acquired in June, was satisfactory. TEG is re-locating its Sherdley Farm composting plant in Lancashire to a larger and more modern facility, but does not expect this to have a material impact on this year’s results.
He says directors believe the outlook for 2010 is ‘very positive’. General market conditions for ‘in vessel composting’ and ‘anaerobic digestion’ continue to look favourable, with regulatory requirements moving in favour of the former.
Analysts expect TEG to have cut losses to around £200,000 for 2009 as a whole, with pre-tax profits of £500,000 on the cards this year and £900,000 pre-tax potentially in sight for 2011. Floated at 50p in 2004, the shares, highlighted last month by Growth Company Investor at 37p, now trade at 42p, down 1p this morning, which values the company at £22.75 million and offers scope for improvement.
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