The unaudited results for the six month period ending June 30 2013 show the Groups revenue increased substantially to 12.9 million from 5.6 million for the same period in 2012. Meanwhile, the Groups half year trading loss was reduced to 0.77 million from 1.79 million in 2012. TEGs cash balance as of June 30 was 1.74 million.
In the chairmans statement, Rory Maw said: I am delighted to present the Group’s interim report for the half year ended 30 June 2013, which was a positive trading period during which the Group has built on the progress seen in the second half of 2012. It is highly encouraging to note that the performance of the business in the 12-month period from June 2012 to June 2013 was the strongest in the Groups history.
He added that TEG still faces challenges with a number of projects but is confident this will not affect future growth. Whilst the Group currently does face challenges in completing the Manchester contract, obtaining the associated cash retentions and recognising associated one-off charges in the current year, the funding offer received for the forthcoming Gaydon project, as well as our strong pipeline of tender opportunities and increasing market profile, allows us to anticipate significant future growth in forthcoming years.
Strong progress
“We are very pleased with the performance of the BOO (build, own operate) business. This substantiates our belief that once we can secure the right funding levels our technologies will provide a viable business proposition for the treatment of organic waste.”
Mick Fishwick, TEG
TEG said the results build on the strong progress seen during the second half of 2012 (see letsrecycle.com story). Revenues of the Groups own plant operations grew by 7% in line with the increase in waste volumes treated. This was accompanied by a 4% increase in gate fees.
TEG specialises in the treatment of organic waste through in-vessel composting (IVC) and anaerobic digestion (AD). The Groups co-located flagship project in Dagenham, representing a 21 million investment, is nearing completion.
Over the six month period, TEG announced new contracts with FCC Environment, Perth and Kinross council and Nottingham city council. Additionally, the fourth and final facility being built by TEG under the Greater Manchester waste PFI contract in Bolton entered the commissioning stage.
Commenting on the Groups performance, TEG chief executive Mick Fishwick said: We are very pleased with the performance of the BOO (build, own operate) business. This substantiates our belief that once we can secure the right funding levels our technologies will provide a viable business proposition for the treatment of organic waste, which is underlined by the securing of funding for our next project to introduce co-located technology at our Gaydon site.
TEG said it expects the Gaydon project will result in significant revenues in 2014 and 2015.
Strategy
TEG has also received an offer of loans from two shareholders Weekcorp and Bronsstdet, taking the total loans to 2.6 million. Mr Maw said this would provide TEG with both working capital and capital to facilitate some future strategic activities.
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Looking forward, Mr Maw explained that TEG continues to benefit from market growth as statutory obligations increase on waste producers to divert organic waste from landfill. This includes landfill tax and a move by the Scottish Assembly to progressively introduce a complete ban on organic waste to landfill from 2014.
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