TEG confident of demand as losses widen
TEG Group, which develops and operates organic composting plants, has reported a 35% rise in annual sales but higher costs pushed the group to a pre-tax loss.
In the year to December 31 the Chorley-based group saw sales rise from £15.3m to £20.7m.
Pre-tax losses came in at £628,000 compared with a £155,000 profit the previous year.
The firm has expanded rapidly in the past year. In June it trebled capacity and increased its plants from four to 10 with the acquisition of Midlands-based Simpro for £5.9m.
As part of the Greater Manchester Waste contract it also started work on a site in Stockport in the final quarter of 2010, and another facility in Trafford should be up and running in the first half of 2011.
The group remains confident of demand for its services as more councils encourage householders to separate organic waste and there is greater legislative pressure to divert rubbish from landfill.
Chairman Nigel Moore said: “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.”
TEG has cash reserves of £3.3m. No dividend was recommended.
