TEG cuts losses as capacity grows
The TEG Group, the Chorley-based renewable energy company, halved its losses in the last six months to £391,000.
TEG, which develops and operates organic composting and energy plants, today announced its interim results for the half year ended 30 June 2010.
The company said trading was in line with expectations, with half-year revenues up substantially to £8.8m from £4.5m last time. The underlying loss for the interim period reduced by 50.8% to £391,000 from £796,000.
TEG handed over construction of a plant in Rochdale for the Greater Manchester Waste PFI plant in November 2009. Commissioning of second plant in Bredbury is underway following construction completion. Construction at the third plant in Trafford commenced in April 2010 and planning approval has been gained at the remaining site in Bolton.
In June, TEG acquired Simpro, a well-established Midlands-based composting business, following a share placing to raise £6.8m before expenses.
TEG said it achieved its first positive trading cash-flow in the past six months and the group retains a healthy cash position with a closing balance as at 30 June 2010 of £4.65m.
Nigel Moore, non-executive chairman, said: "The board is very pleased with the continued growth of the business and the performance in the first half of the year.
"The acquisition of Carleton Rode has proved very successful and the recent acquisition and successful integration of Simpro further enhances the group's capabilities. The board believes the broup's strategy to grow the business by a combination of plant sales and owned and operated facilities, and to diversify into anaerobic digestion, is proving very successful and the group intends to continue to pursue this strategy.
"TEG's ability to secure debt and project finance reinforce the group's ability to respond to changes in market procurement policy and to maintain strong future growth. The group is very well placed to continue to take full advantage of its expanding market with both its Silo Cage in-vessel composting technology and its collaborations in the AD sector with UTS and Alkane.
"The board is confident that the group has an exciting future with a strong outlook for trading in the remainder of 2010 and beyond."