TEG positive about 2011
Chorley-based recycling firm TEG Group said revenues in 2010 grew significantly again compared to 2009 following strong revenue growth in the second half of the year.
Within a trading update for the year, covering the twelve month period to 31 December 2010, TEG confirmed it did not meet market forecasts due the construction of a fourth Greater Manchester composting facility being delayed by severe weather conditions in the latter part of 2010 and the committed overhead costs incurred.
TEG, which operates and develops biogas plants for producing compost, announced earlier in January that planning permission was given for a site in Bolton but construction has not started.
TEG added that the construction of the other three Greater Manchester plants in Bredbury, Trafford Park, and Rochdale has remained on schedule.
TEG said underlying trading losses for 2010 will be of a similar level to those reported for the year ended 31 December 2009. The group's cash balance continues to remain very healthy, closing significantly higher than the market forecast.
In a statement to the London Stock Exchange, TEG said: "The board believes that the outlook for 2011 is positive. While the Government's comprehensive spending review is likely to reduce some recycling streams in the short term, general market conditions continue to look very favourable for both the In Vessel Composting and Anaerobic Digestion prospects as local authorities continue to divert organic waste from landfill to meet statutory targets.
"The company's tendering and project pipeline remains strong. The board has observed the continued shift by local authorities from procurement of plants to the letting of waste supply contracts to private sector funded facilities. Encouragingly, the company has generated significant interest from potential financiers to fund such projects and the board will continue to evaluate appropriate projects on a case by case basis."
TEG anticipates announcing its preliminary results for the twelve months to 31 December 2010 in the week commencing 14 March 2011.
