TEG Group’s first half turnover doubles

ORGANIC composting business TEG Group has seen its turnover for the first half of 2010 double as councils look to avoid increasing landfill taxes.

The Chorley-based company said that half year revenues were up ‘substantially’ to £8.7m from £4.4m in 2009.

The business also recorded an underlying EBITDA profit of £461,000 compared to a £273,000 loss in 2009.

The group recorded its first positive trading cash-flow for the period and it retains a healthy cash position with a closing balance at June 30 of £4.6m.

In June, it purchased established Midlands-based composting business Simpro for £5.9m following a ‘successful share placing to raise £6.8m before expenses’.

In TEG Group’s interim results for the six months until June 30, it records: “Simpro has six operating sites, immediate revenue and cash flow and potential for future growth”. 

Simpro is part of a consortium that has secured preferred bidder status for the Milton Keynes Council contract.

The report also states that it is witnessing increased business as councils increasingly look to divert waste from tips to avoid escalating landfill taxes.

Nigel Moore, non-executive chairman of TEG Group, said: “The board is very pleased with the continued growth of the business and the performance in the first half of the year.

“The acquisition of Carleton Rode has proved very successful and the recent acquisition and successful integration of Simpro further enhances the group’s capabilities. 

“The board believes the group’s strategy to grow the business by a combination of plant sales and owned and operated facilities, and to diversify into aerobic digestion (AD), is proving very successful and the group intends to continue to pursue this strategy.

“TEG’s ability to secure debt and project finance reinforce the group’s ability to respond to changes in market procurement policy and to maintain strong future growth. 

“The group is very well placed to continue to take full advantage of its expanding market with both its Silo Cage in-vessel composting technology and its collaborations in the AD sector with UTS and Alkane.

“The board is confident that the group has an exciting future with a strong outlook for trading in the remainder of 2010 and beyond.”