Result of AGM & Statement

RNS Number : 9555H

TEG Group (The) PLC

26 June 2013

 

 

For release on 26 June 2013

The TEG GROUP Plc (AIM: TEG)

("TEG" or "the Group")

Result of AGM & Statement

The TEG Group Plc, the AIM listed green technology company, which develops and operates organic waste composting and energy plants, announces that at the Annual General Meeting ("AGM") of the Company, held today, all resolutions were duly passed. 

At the Meeting, Non-Executive Chairman, Rory Maw made the following statement:

I am pleased to report that your company has made very significant progress in the last 12 months. We returned to growth and we achieved some very important milestones for the Group, not least achieving Financial Close on the flagship Dagenham development. 

The Board is delighted with the continued development of the Group's operational businesses.  Revenues and margins improved yet again in 2012 and 2013 has started well.  Our strategy is to grow this side of the business, thereby creating a less volatile source of earnings and cashflow and increasing underlying, sustainable value for our shareholders.  It was pleasing for us to announce the milestone of having recycled over 1 million tonnes of organic waste, which we have diverted from landfill over the lifetime of the Group.  Furthermore, the Board was delighted to announce further contract wins in 2013 in Shropshire, Nottinghamshire and Perth & Kinross.

There have also been some encouraging developments on the projects side of the Group during the last 12 months.  The continued progress of our Perth AD plant is pleasing and we have now been generating power for over 12 months.  Furthermore, the financial closure of the Dagenham project was a significant milestone and I am pleased to report that construction is proceeding well and we fully expect to achieve construction completion on time and budget.  This is a high profile project and we hope it can be used as a springboard for further ventures.

Unfortunately, I am unable to report a conclusion to the ongoing financial retention issues relating to the Manchester contracts.  We continue to work hard to secure their release and we have put in place further resource to manage certain projects, aimed at bringing this contract to a conclusion allowing the release of the retentions.

Turning to strategic developments, the Group is looking forward to reaching financial close on the next project, likely to be a further combined IVC and AD facility, this time at one of the Simpro sites in the Midlands.  We have received provisional offers of funding and are negotiating to secure the best terms for shareholders.  The complex funding structure at Dagenham was appropriate for that project, but it resulted in limited equity participation for the Group. The Board is therefore exploring opportunities to try to gain a more significant equity holding in this venture, consistent with our strategy to grow the "Build Own Operate" operational activities.  We believe this approach will deliver more direct, long-term value to our shareholders and we are currently examining financing options, which we hope to bring to fruition in the near future.

The waste market continues to develop in favour of TEG, with landfill tax rising and legislation forcing increased diversion of waste from landfill.  The wider regulatory environment is also now benefitting the Group with very few other competing IVC technologies now able to meet the stringent environmental standards required.  With a strong and growing operational business, a successful move into anaerobic digestion, excellent progress on the Dagenham project and the end of the Manchester contract within sight, the Board is confident that the Group has a promising outlook.

 Whilst challenges remain, we look forward to further exciting developments in the not too distant future". 

- ENDS -

Contact:
The TEG Group Plc	Tel: [phone]
Michael Fishwick, Chief Executive	www.theteggroup.plc.uk
Peckwater PR	Tel: [phone]
Tarquin Edwards	[e-mail]
N+1 Singer Advisory LLP (Nomad & Broker)	Tel: [phone]
Andrew Craig/Ben Wright

Editor's Notes:

TEG

TEG provides state of the art technology for handling organic wastes.  Its in-vessel composting ("IVC") system is one of the few approved technologies capable of treating animal by-product ("ABP") waste and it 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") or Feed-in Tariffs ("FITs").  TEG owns its composting technology, the TEG Silo Cage System, 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 and sustainable alternative to landfill.

The TEG Silo Cage System

The Silo Cage system, one of the few technologies capable of treating organic 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, suitable for urban environments, are not unsightly and are environmentally friendly.

Collaboration with UTS

UTS is one of the world's leading biogas companies offering services in the planning, construction, delivery and installation of biogas plants and their key components.  UTS has its own production facilities and service shops, technical design and development departments as well as mobile mechanical and biological customer service technicians to support the international client base. 

UTS also develops and sells specialized mixers, pumps and a variety of solid/liquid separating devices related to the biogas and agro/food markets. It is headquartered near Munich, Germany with subsidiaries in Italy, Hungary, Spain, the Czech Republic and now a rapidly developing company UTS Biogas Limited, to service the United Kingdom & Ireland markets.

TEG Biogas (Perth) Limited

TEG Biogas (Perth) Limited ("TEG Biogas Perth") is a joint venture company established by TEG with Albion LLP.  TEG Biogas Perth is constructing a 15,000 tonnes per annum AD plant at TEG's Glenfarg site to produce nominally 0.7MW of electrical power and 0.2MW of heat that is to be used by Binn Eco Park.  The facility has been in operation, generating revenues from waste sales and power generation since Quarter 1 of 2012.

General

Customers include local authorities, waste management companies, food processing companies, 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. 

 

END

 

 

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