TEG.L Regulatory News (TEG)

20 Apr 2007 07:01

TEG Group (The) PLC20 April 2007 For release 7:00am 20 April 2007 The TEG GROUP PLC (TEG) ("TEG" or "the Company") AGM STATEMENT At the Annual General Meeting of TEG Group Plc ("TEG" or "the Company"), theAIM-listed cutting edge green technology company, which converts organic wastesinto natural organic fertiliser, which is to be held today (20 April 2007) atThe Bridgewater Hall, Lower Mosley Street, Manchester M2 3WS, Non-ExecutiveChairman, Nigel Moore will make the following statement: "Since we last met, I am pleased to report that your company has continued tomake very significant progress towards its goal of becoming the clear company ofchoice for commercial organic composting in the United Kingdom. In a few moments, I will adjourn the meeting and hand you over to our ChiefExecutive, Mick Fishwick who will bring you up to date with the recentactivities of TEG and the further strides that have been made during the pastyear in the development of your company. Before I do so, I would like to addressa couple of matters; firstly, changes to our structure and secondly, an updateon the direction the company is taking. You will recall that in 2006 we began a restructuring process to position thebusiness ready for the anticipated growth and exciting times ahead. On acorporate level, John Hough stepped down from the Board and was replaced by DougBenjafield, the former Cleanaway Director. I am pleased to report that Doug hasworked actively with the team and settled well into the Company. At the turn of the year, we completed a restructuring exercise and introduced 2new subsidiary companies; TEG Environmental Ltd and the Natural OrganicFertiliser Company Ltd, or NOFCO. The parent company was renamed the TEG GroupPLC. TEG Environmental Ltd is now the principle trading subsidiary responsible forplant construction and operations, together with engineering and technicaldevelopment. Its board comprises of experienced waste management professionalsand this team focuses entirely on the growing and very demanding day-to-dayoperational activities of the business. NOFCO has been created to focus on compost product placement and the developmentof end markets. As TEG and the composting market expand, finding diverse andsecure outlets for the compost product becomes ever more important. TEG'sexpertise in this area has already enhanced our reputation and is a criticalelement in our bids with Local Authorities, who seek assurances on landfilldiversion. Together with our alliance with Glendale in the horticultural sector,we believe we are developing an expertise that is second to none in thecomposting market. The parent company, TEG Group PLC continues to manage shareholder interests,determines the future strategy of the Company and monitors the performance ofthe subsidiaries. On that note, I would now like to turn to the growth strategy and futuredirection of the company. We have moved over the last 12 months from the development phase of the businessto a substantial operating business and we are now working towards our goal of asustainable, highly profitable trading business. The demand for TEG technologyis higher than ever and it is a pleasure to see the business begin to flourish. The Board still believes that the best strategic direction for the business isto grow by a combination of plant sales and Build Own and Operate facilities.The development of Build Own Operate facilities whereby TEG offers a processingservice, gaining revenues from gate fees for waste and sales of compostproducts, offers the significant attraction of generating long term sustainablerevenues on which we can build the business. This is supplemented by plantsales, generating significant lump sum revenues. While the interest in TEG andits technology is growing and the value of such plant sales is increasingsignificantly, we still believe it is important for the security of the businessto continue to develop our own facilities. We believe your confidence in the Company and the management team has been wellplaced. We are in an exciting and growing market, we have an excellent and adeptmanagement team, we have the best technology and we have a secure line offunding. The Board believes it is making tremendous progress with the business and isbuilding on the strong foundations we had formed during the years ofdevelopment. There is always a very difficult balance to be drawn between theshort term needs of all our shareholders and the long term interests of thebusiness, but we are sure you will agree that our progress over the last 12months does suggest that we are following the right path." ENDS Contact: The TEG Group Plc Tel: 01772 314 100Michael Fishwick, Chief Executive Adventis Financial PR Tel: 020 7034 4758Tarquin Edwards 07879 458 364 Canaccord Adams (Nomad) Tel : 020 7050 6742/020 7050 6750Chris Bowman/Robert Finlay Editor's Notes: TEG provides an in-vessel composting technology, which is one of the fewapproved technologies capable of treating animal by-product (ABP) waste. Planteconomics are predominantly driven by the gate fees charged, rather than thevalue of the end product (compost). The TEG process is an economic alternativeto landfill and is entirely LATS compliant. The Silo Cage system, one of the few technologies in Europe capable of treatingthis waste, is a natural process producing compost as an end product, used as anexcellent soil conditioner that fertilises, retains moisture, provides structureand reduces the incidence of plant disease. TEG's Silo-Cages are housed inself-contained buildings, are not unsightly and are environmentally friendly. Customers include local authorities, waste management companies, foodprocessors, farmers and landowners. The Company's expanding market is driven byincreasingly stringent EU and UK legislation regulating the treatment anddisposal of organic waste. Statutory targets for the diversion of waste fromlandfill increase annually through to 2020, increasing TEG's market opportunityyear on year. The Waste Resource Action Programme estimates that 450 compostingplants will be needed by 2020 to satisfy local authority requirements alone, andthere is increasing demand from the private sector driven by ABP legislation. NOFCO is a marketing company specialising in the development of end markets forcompost products, an important aspect of all plant developments and key to localauthority development. The company has an expertise in the development ofagricultural and horticultural markets and this capability is to be provided tocustomers to enhance TEG's overall service offering. This information is provided by RNS The company news service from the London Stock Exchange