TEG hits targets
A LANCASHIRE recycling business which converts organic waste into fertiliser hit its trading targets last year but has reigned in growth forecasts.
In a pre-close trading update the AIM-listed TEG Group said it was reducing its 2009 growth expectations because some of its clients cannot secure the finance required to pursue major projects.
But the board said they were “confident” that the business will continue to develop during the year.
The statement said: “In such market circumstances it [TEG] believes it is appropriate to be prudent and accordingly is reducing its previous 2009 growth expectations. Despite the anticipated delays, the board expects continued growth in 2009.”
Preston-based TEG said it experienced “significant growth” during 2008. Full results for the year to December 31 will be announced in March.
Last month it opened a new recycling facility in Exeter which it is operating as Verdia Horticulture, a joint venture with Glendale Managed Services.
The facility has a capacity of 14,000 tonnes a year, producing around 8,000 tonnes of compost which is matured and blended before being sold into the local horticultural sector.
Chief executive Mick Fishwick said: “We are very pleased to have performed to expectations in 2008 and to have achieved such significant growth. It has been a ground breaking year for the company.
“Given the general uncertainties in the economy and the difficulties for everybody in obtaining project finance, we are very pleased to be in a position of strength and to be confident in the continued development of the business for the foreseeable future.”
