4th Jul 2014 07:31
LONDON (Alliance News) - The TEG Group PLC Friday expressed confidence for its future prospects as its operational businesses saw a strong start in the half year ended June 30, citing its promising pipeline.
The green technology company said it had not been able to reach a financial close on its Gaydon project in Warwickshire, and whilst early construction activities have been undertaken, certain site related issues need to be resolved. Whilst this was "frustrating", it said, it will continue to pursue the opportunity amongst others.
Across its operational businesses trading in the first half was "very satisfactory", TEG said, as it acquired the Hillbarton composting facility in March. Integration of the business has gone well, it said.
The company saw solid progress relating to its contracts in Manchester, and work is continuing to resolve outstanding issues, it said.
The GBP16 million anaerobic digestion facility in Dagenham was delivered at the end of February, and the company has moved into a 15 year operating and maintenance contract at the facility which will generate GBP1.3 million in yearly revenues. The Perth anaerobic digestion facility continues to operate well, TEG added.
TEG cited the landfill tax, recycling targets and legislation as driving forces, encouraging the use of other forms of waste disposal aside from landfills. It noted that the implementation of the landfill ban in Scotland has increased waste supply in 2014.
"The Company still needs to establish a solid capital position, but we maintain a very promising pipeline, and we are confident the Company has good prospects ahead," said Chief Executive Mark Fishwick in a statement.
Shares in TEG are untraded Friday; they closed Thursday at 4.90 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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