Lancashire’s TEG Group reports pretax loss of £1.48 million following a difficult year

Specialist green technology company TEG Group has reported revenue of £5.6 million for the six months ending 30th June 2014, compared to £12.9 million at this stage last year.

The group has reported an increased pretax loss of £1.48 million for this period, compared to £777k for 2013.

TEG Group’s cash balance was at £288k, in comparison to £1.73 million at this point in 2013.

Gross profit is down at £1.089 million, compared to £1.9 million in 2013.

The group’s flagship £16 million Dagenham anaerobic digestion (AD), in-vessel composting (IVC) facility was completed at the end of February this year and TEG has moved into a 15-year operating and maintenance contract.

The company reported that its Perth AD facility has an output ahead of design capacity, consistently producing in excess of 0.7MW of electricity.

There has also been a restructuring of the Board at TEG Group, which was completed with the appointment of Steve Morrison and Fergus Healy.

Leo McKenna, non-executive chairman, TEG Group Plc, said: “The Board believes the Operations division of the Group offers sustainable and predictable revenues and therefore represents the future value of the Group.

“Its performance over recent years has been encouraging and it has developed into one of the strongest performers in the sector.

“The Board believes it should therefore focus future efforts and resources on the growth of this division through the development of AD plants on Group sites, possible refinancing of associated interests and through value enhancing acquisitions.

“This strategy will reduce the reliance on the unpredictable and lumpy cash flows associated with contracts in the EPC division.”

“The Board recognises that the Group remains significantly undercapitalised and that to secure the future of the Group it is necessary to secure further funding, both for projects and working capital.

“The Board also recognises that the Group remains at risk unless secure additional finance is achieved, but on the basis that such funding can be secured, the Board is confident that the Group has a positive future as a larger and more profitable operating company.”