Re Joint Venture

RNS Number : 9605A

TEG Group (The) PLC

19 October 2009

 



For release

07:00

Date: 19 October 2009

The TEG GROUP PLC (TEG/L)

("TEG" or "the Company")

Glendale Grounds Management Limited and TEG Announce End of JV 

Further to the notice to the markets on 22 June 2009, Glendale Grounds Management Limited ("Glendale") and The TEG Group Plc have reached agreement for Glendale to acquire TEG's shares in Verdia Horticulture Limited ("Verdia" or "the JV"), the joint venture company launched in 2007 to manufacture horticultural compost products. The parties believe that the future of Verdia is best served as a wholly owned operation and as the Verdia plant at Hillbarton, Exeter, is part of a larger Glendale facility the parties considered it more appropriate for Glendale to acquire the share capital from TEG. The consideration for the shares was £150,000 and working capital loans of £200,000 were repaid. In the year ended 31 December 2008 Verdia recorded a loss before tax of £51,000 and at that date Verdia's gross assets amounted to £1,483,000 while net assets amounted to minus £80,800.

TEG will continue to support Verdia under the plant supply agreement between the parties.

ENDS

Contact:

The TEG Group Plc                          Tel: [phone]

Michael Fishwick, Chief Executive

Peckwater PR                                  Tel: [phone]

Tarquin Edwards                 

Canaccord Adams (Nomad)             Tel : [phone]

Robert Finlay

Guy Blakeney

Editor's Notes: 

TEG

TEG provides an in-vessel composting technology, which is one of the few approved technologies capable of treating animal by-product (ABP) waste, and is now providing an anaerobic digestion (AD) technology to produce power from food waste. Plant economics are predominantly driven by the gate fees charged, rather than the value of the end product (compost).  The AD plants also benefit from power sales and Renewable Obligations Certificates ("ROCS"). TEG owns its composting technology and has an agreement with UTS Biogastechnik GmbH ("UTS") for the provision of AD technology into the UK waste markets.  The TEG processes are an economic alternative to landfill.

The TEG Silo Cage System

The Silo Cage system, one of the few technologies in Europe capable of treating this waste, is a natural process producing compost as an end product. The compost is an excellent soil conditioner that fertilises, retains moisture, provides structure and reduces the incidence of plant disease. TEG's Silo-Cages are housed in self-contained buildings, are not unsightly and are environmentally friendly.

General

Customers include local authorities, waste management companies, food processors, farmers and landowners. The Company's expanding market is driven by increasingly stringent EU and UK legislation regulating the treatment and disposal of organic waste. Statutory targets for the diversion of waste from landfill increase annually through to 2020, increasing TEG's market opportunity year on year. The Waste Resource Action Programme estimates that 450 composting plants will be needed by 2020 to satisfy local authority requirements alone, and there is increasing demand from the private sector driven by ABP legislation.

NOFCO, a subsidiary of TEG, is a marketing company specialising in the development of end markets for compost products, an important aspect of all plant developments and key to local authority development. The company has an expertise in the development of agricultural and horticultural markets and this capability is to be provided to customers to enhance TEG's overall service offering.

 

END

 

 

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