Organic recycler TEG Group has announced 45% reduced operating losses and a full year revenue increase of 35% on the previous year.
AIM listed TEG’s preliminary results demonstrated a “pleasing year” for the group. Figures showed that 2009 losses of £720,000 reduced in the past year to £398,000, while revenue increased to £20.7m from the previous year’s £15.4m. However, a dividend was not recommended for this year.
TEG Group non-executive chairman Nigel Moore said: “Trading for 2010 has been pleasing and the group continues to deliver significant growth.
“TEG maintains a strong pipeline of tender opportunities and anticipates the successful conclusion of further projects in 2011, Market demand remains strong and the group is well placed to continue to take advantage of the expanding market. The board is confident that the group has an exciting future with a strong outlook for trading in the remainder of 2011 and beyond.”
In January, TEG announced it would miss market forecasts due to a delay in constructing the fourth in-vessel composting facility at the Greater Manchester site. The Instruction to Proceed (ITP) had been scheduled for the end of 2010 but was postponed due to the severe weather at the end of the year. The ITP is now expected in the first half of 2011.
The company now has an annual organic waste processing capacity of 280,000 tonnes and future plans will be focused on anaerobic digestion technology, following increased market interest in energy generating technologies.
TEG added that because of budget cuts, local authorities are likely to reduce recycling streams in the short-term “as some local authorities delay the cost of implementation of new collection rounds for segregated waste streams”. It has also attracted “significant interest” from potential investors as local authorities have switched to private sector investment when procuring instead of carrying out direct plant procurement.