RE: Teg Group27 Sep 2012 09:05
[TEG]
Highlights
Financial
· Period of transition for the Group, with a refocusing of the business on its operating sites, further cost reductions and, since the period end, a successful financial close on the Dagenham project.
· Underlying trading at the group's own plant operations has been strong.
· Half-year revenue for period was £5,617,000 (2011 interim: £9,333,000) and the Group loss was £1,795,000 (2011: £798,000), reflecting the loss of the North East Wales contract and delays to the fourth facility in Manchester and at Dagenham.
· Group recorded a gross profit of £1,268,000 (2011 interim: £2,345,000 profit).
· The Group cash balance as at 30 June 2012 was £1,101,000.
· No dividend is recommended.
Operations
Group Plant Operations
· Revenues and profit margins from the Group's own plant operations have continued to grow impressively in 2012, reflecting the continuous growth in the waste market together with a reduction in competitor capacity following stricter regulatory enforcement.
· Operational revenues grew by 15% in the first half of 2012, with the gross margin increasing from 18% to 24%. The volume of food and co-mingled waste grew by approximately 20%.
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