Organic waste recycler TEG Group has said it is confident of a “promising and exciting future” despite recording an interim first-half loss of £1.795m.
The company board said the anaerobic digestion and composting firm was in a “period of transition”, refocusing on its operating sites and cost reductions. The board recommended no dividend be paid.
Group chairman, Rory Maw, said the firm’s underlying trading at its own plant operations was strong. Operational revenues grew by 15% in six months ending 30 June 2012, and food and waste volumes grew 20% during this period, partly caused by the wet weather.
- Half-year revenue - £5.617m (2001 - £9.333m)
- Group loss - £1.795m (2011 - £798,000)
- Group cash balance on 30 June 2012 - £1.101m
Maw said in a statement: “The financial close of the Dagenham project was a significant milestone for the Group. Market demand for more capacity remains strong and with a secure funding position at the project level, the Group will be well placed to continue to take advantage of the expanding market.
“TEG maintains a strong pipeline of tender opportunities and assuming the funding structure for the Dagenham project can be replicated this will place the Group in a strong position. The good performance of the Group’s own plant operations and the continued growth in this segment demonstrates that if TEG can secure the appropriate level of project funding and control its costs appropriately, it will be well placed to deliver a profitable and successful operating platform.
“The Board is confident that the Group has an exciting future with a promising outlook for trading in the second half of 2012 and beyond.”
In June the firm reported an £8m loss for the year to December 2011, causing shares to tumble.
Earlier this month TEG’s Dagenham plant became the first waste project to receive funding from the Green Investment Bank precursor. The UK Waste Resources and Energy Investments (UKWREI) fund, administered by Foresight Group, invested £2m in London’s first anaerobic digestion (AD) plant.