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TEG skips dividend

By BFN News | 07:28 AM | Tuesday 20 September, 2011

Green technology company TEG Group said trading during the half year to end-June has been strong, and the group continues to deliver significant growth. Half year revenues increased by 6% to £9,333,000 (2010: £8,797,000). Gross profit rose by 5% to £2,345,000 (2010: £2,231,000). Loss before tax was £798,000 (2010: £376,000 loss) reflecting delays in key projects, as previously announced in June 2011. Cash balance at 30th June 2011 was £1,520,000. (Balance as at 16th September 2011 was £3,310,000). No dividend is recommended Total waste processed in the period up 86% and a record plant performance from TEG operating facilities - the Group has a number of major projects in the pipeline from pre-qualification through to submitted tender. Instruction to Proceed has been received for the Fourth Greater Manchester plant. LondonWaste contract has been secured to support the Dagenham BOO project, which is developing well. Integration of the Simpro acquisition was completed successfully. TEG said the market remains strongly positive with regulatory pressures/EU legislation increasing. Nigel Moore, Non-Executive Chairman, said: "Market demand remains strong and TEG maintains a strong pipeline of tender opportunities. Whilst tender periods for larger contracts are long, they offer secure, long term revenue growth and the Group anticipates the successful conclusion of further projects, underpinning long term shareholder value. TEG's technology is robust, is well received in the market and its facilities are operating well. The Group anticipates a further strengthening of the organic waste market in the short to medium term. The Board is confident that the Group has an exciting future with a strong outlook." Story provided by