TEG chairman bullish on prospects
AIM-listed green technology company TEG Group’s chairman says its prospects are “promising” and “exciting developments” are on the horizon.
Rory Maw told shareholders ar the Preston company’s annual meeting on Wednesday that the business. which develops and operates organic waste composting and energy plants, has made “very significant progress” in the last year.
TEG’s business comprises projects and operations. Operations provides smooth revenues, while on the project side the group has to rely on sourcing external funding partners to ensure delivery.
The firm is looking to expand its operational incomes, and in projects retain a higher stake in the schemes it brings forward.
Mr Maw explains: “The board is delighted with the continued development of the Group’s operational businesses. Revenues and margins improved yet again in 2012 and 2013 has started well. Our strategy is to grow this side of the business, thereby creating a less volatile source of earnings and cashflow and increasing underlying, sustainable value for our shareholders.”
TEG said it was still awaiting the resolution of “financial retention issues” relating to payment from main contractor Viridor Laing for work it carried out on the Greater Manchester waste PFI project. More resource has been committed to this, the company said, and the “end is in sight”, the chairman added.
Mr Maw added: “The waste market continues to develop in favour of TEG, with landfill tax rising and legislation forcing increased diversion of waste from landfill.
“With a strong and growing operational business, a successful move into anaerobic digestion, the board is confident that the group has a promising outlook. Whilst challenges remain, we look forward to further exciting developments in the not too distant future”.
