TEG Group posts 2.5m losses after-tax

Organics recycling firm TEG Group has today (March 31) announced after-tax losses of more than 2.5 million for 2013, in what the firm described as a disappointing financial performance in the second half of the year.

This figure also represents an increase on the 1 million losses the firm suffered the previous year.

Overall, the Groups revenue in 2013 was more than 19.5 million, making a gross pre-tax profit of 3.38 million. Again, however, this shows a fall from 2012 when the Group reduced its losses with revenues of 22.4 million and a gross pre-tax profit that year of 4.6 million (see letsrecycle.com story).

According to TEG Group, the financial losses are due to exceptional provisions and a delay in reaching financial close on its anaerobic digestion (AD) and in-vessel composting (IVC) project at Gaydon in Warwickshire.

But, the firm said its wholly-owned plant operations such as its Todmoren and Telford IVC facilities, which both underwent capacity expansions last year performed impressively with substantially increased productivity, adding that it had pass the one million tonne mark for organic waste recycling during 2013.

In addition, the Group said it had had an excellent start to 2014 with the successful completion and handover of its 16 million flagship Dagenham IVC and AD facility, which will be of similar size and scope to the Gaydon project. TEG has now started a 15-year operating and maintenance contract generating 1.3 million per year in revenues while retaining 24.5% ownership of the plant.

Construction of the Groups fourth and final facility in Bolton as part of the 25-year Greater Manchester Waste PFI contract (see letsrecycle.com story) was also completed in the last quarter of 2014, with the other three facilities all successfully passing their 52-week Availability Tests.

Commenting, Rory Maw, non-executive chairman, TEG Group plc, said: TEGs plant operations performed strongly throughout the year, with increased productivity, utilisation and the expansion of a number of facilities, allied to continued growth in the organics sector of the waste market. The Group also successfully completed the Dagenham project, Londons first combined IVC and AD plant, securing handover on target shortly after the period end.

As we had advised previously, exceptional provisions and the delay in reaching financial close on the Gaydon project have regrettably led to a disappointing financial performance in the second half of the year. Our operations have, however, had an excellent start to 2014 and I believe the Group remains well placed to take advantage of its expanding market. The board is excited by potential new opportunities in the pipeline and overall we expect a strong operational performance in 2014.

Mr Maw also welcomed his successor as TEG chairman on the Groups board, Leo McKenna, who will take over the role from April 2014.