TEG crippled by funding crisis
SHARES in the energy-from-waste specialist TEG could be worthless after the group failed to secure extra finance.
The Preston business, which specialises in building and managing anaerobic digestion energy plants, is short of cash because it has £2.8m tied up in a contract it carried out for Costain as part of the Greater Manchester Waste Contract.
The money has been held back until remedial work is completed.
It said today that it has been unable to release any of the money, and without it the board believe it is “extremely unlikely” other finance can be secured.
It is looking at selling parts of the business including the operating division, which runs the energy facilities, but has warned that, “that there may be little or no value remaining in the equity of the group”.
The company added: “The board continues to explore all financing and strategic options for the group but it does not believe that further funding will be secured to allow for the future working capital needs of the group.”
TEG’s shares were suspended last month due to the business’s funding difficulties. They have fallen in value from 140p in 2007 to 1.3p, giving the business a market value of £2.6m.
