31st Jan 2014 10:33
LONDON (Alliance News) - Green technology business The TEG Group PLC Friday said trading for 2013 was broadly in line with expectations as it progressed with a number of contracts.
The company, which develops and operates organic composting and energy plants, said trading in its operations division continued to be "strong" in the second-half of the year, exceeding board expectations.
TEG said its Perth Anaerobic Digestion (AD) joint venture continues to perform well, generating in excess of 5 million Kilowatt hours during 2013.
In TEG's projects division, construction of the Dagenham combined In Vessel Composting (IVC) and AD plant has continued to proceed "smoothly" and the plant is now undergoing its planned commissioning and testing process.
The Dagenham site in East London will be home to a Sustainable Industries Park for environmental industries and technologies.
The London Sustainable Industries Park is being developed on 60 acres of land owned by Greater London Authority and is at the heart of the London Mayor?s Green Enterprise District.
The company expects this plant to be handed over on time and budget in the current quarter and final retentions of approximately GBP1.5 million are expected to be released at that point.
TEG will then commence a 15-year operating and maintenance contract and will retain 24.5% ownership of the facility.
In addition to the Dagenham park, TEG said progress has continued on the development of a new IVC/AD project at the TEG Gaydon site in Warwickshire.
The board had hoped to reach "financial close" with the project's funders before the end of 2013, which would have contributed to revenue in that year, but the delay into 2014 means that revenue should now be recognised during 2014 and 2015.
As explained in September, provision was made for a number of one-off administrative charges, including some costs associated with the shareholder loan announced on September 30 2013.
Together with the delay in closing the Gaydon project, and corresponding delay in revenues, this has resulted in a disappointing second-half to the year, said the company.
However, the firm said its outlook for 2014 is positive despite expecting tougher trading conditions for the operations division in 2014 due to competitive pressures in some regions.
TEG will announce its full-year results for the period ended December 31 2013 in the week commencing March 31.
The stock was trading at 4.03 pence Friday morning, down 0.72 pence or 15.3%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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