TEG.L Regulatory News (TEG)

22 Mar 2005 07:01

TEG Environmental Plc22 March 2005 TEG ENVIRONMENTAL PLC Preliminary Results for the year ended 31 December 2004 TEG Environmental Plc ("TEG"), the leading edge green technology company which converts organic wastes into natural organic fertiliser, announces its Preliminary Results for the year ended 31 December 2004. Chairman's Statement I am delighted to present the company's first annual report since its admissionto AIM on 27h July 2004. The placing and open offer at that time raised £1.95million. New institutional investors, from London and Switzerland, wereintroduced to the company by the company's brokers, Canaccord, and 30% of thetotal money raised was from existing private shareholders. The cost of the fundraising has been charged against the share premium account. Due to timing delays on contracts the company continued to operate in lean modeand annual operating costs were consequently below those anticipated at the timeof our listing. We have recorded a post tax loss of £1.112 million (2003: Loss£1.871 million). No dividend is proposed. A significant improvement in the planning climate for waste managementfacilities has now been signalled by the government. Obtaining 'planningconsent' has been TEG's principal barrier to progress in several locations andin many cases postponing sales which were otherwise in place. On the 6 December,an announcement from the Head of Minerals and Waste Planning in the Office ofthe Deputy Prime Minister advised of a significant revision to the planningguidance rules. These changes should have a beneficial effect on TEG's planningapplications and current appeals. We have now been formally advised by the Cityand County of Swansea that our proposal in response to their revised tender hasbeen approved by the Cabinet of the Council on 14 February 2005. The contractshould be significant in that not only does it involve the sale of the Silo-Cageplant but awards the company the management of the whole contract. This reflectswell on the quality and strength of our technical team and we believe it is aunique award for a company such as TEG. Tenders are in preparation for othermajor local authorities and detailed negotiations continue on a number of othersales projects in the UK and on sites for build own and operate projects. Theplanning application for an additional building at our Preston facility wasapproved on 9 February. Michael Fishwick joined the Company in the role of Chief Executive Elect and wasappointed to the Board of Directors on 17 January. He will understudy DickBilborough in the interim. Tanja Willis joined the Board on 7 March as FinanceDirector, she continues as Company Secretary. Together with other key executivesheading sales, project management, engineering, technical and scientific, wehave a strong, committed executive team to take the Company forward. The Company's Annual General Meeting will be held on Tuesday 12 July in London.Members will be circulated with further information in due course. NIGEL MOOREChairman PROFIT AND LOSS ACCOUNTFor the twelve months ended 31 December 2004 12 months Restated 14 ended 31 months ended December 31 December 2004 2003 Note £ £ TURNOVER 21,572 33,147 Cost of Sales (12,017) (58,299) _________ _________GROSS PROFIT / (LOSS) 9,555 (25,152) Administrative expenses - other (1,227,550) (1,522,206) - exceptional items - (450,000) _________ _________Total administrative expenses (1,227,550) (1,972,206) OPERATING LOSS (1,217,995) (1,997,358) Interest receivable 34,598 6,887Interest payable (4,121) (5,740) _________ _________LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (1,187,518) (1,996,211) Taxation on loss on ordinary activities 2 75,774 125,645 _________ _________LOSS FOR THE PERIOD (1,111,744) (1,870,566) --------- --------- --------- --------- Loss per ordinary share 3 (7.9p) (16.2p)- basic & diluted BALANCE SHEETAs at 31 December 2004 31 31 December December 2004 2003 £ £FIXED ASSETSIntangible assets 3,990 7,986Tangible assets 206,549 158,121 _________ _________ 210,539 166,107CURRENT ASSETSStocks 8,166 6,881Debtors 100,122 98,513Cash at bank and in hand 1,164,284 813,505 _________ _________ 1,272,572 918,899 CREDITORS: due within one year (300,479) (317,286) _________ _________NET CURRENT ASSETS 972,093 601,613 _________ _________TOTAL ASSETS LESS CURRENT LIABILITIES 1,182,632 767,720 CREDITORS: due after more than one year (36,187) (10,447) _________ _________NET ASSETS 1,146,445 757,273 --------- --------- --------- --------- CAPITAL AND RESERVESCalled up share capital 819,269 624,207Share premium account 9,352,543 8,046,689Profit and loss account (9,025,367) (7,913,623) _________ _________EQUITY SHAREHOLDERS' FUNDS 1,146,445 757,273 --------- --------- --------- --------- CASH FLOW STATEMENTFor the twelve months ended 31 December 2004 12 months Restated 14 ended months 31 December ended 31 2004 December 2003 Note £ £ NET CASHOUTFLOW FROMOPERATINGACTIVITIES 4 (1,196,815) (1,676,067) _________ _________RETURNS ON INVESTMENT AND SERVICING OFFINANCEInterest received 34,598 6,887Interest element of finance lease and hirepurchase payments (4,121) (5,740) _________ _________ 30,477 1,147 _________ _________TAXATIONUK Corporation tax received 71,137 154,508 _________ _________ CAPITAL EXPENDITURE AND FINANCIALINVESTMENTPayments to acquire tangible fixed assets (27,972) (34,849)Receipts from sales of tangible fixed assets 2,859 2,000 _________ _________ (25,113) (32,849) FINANCINGReceipt from sale of shares - 550,000Proceeds on issue of shares 1,500,916 1,623,234Repayment of bank loans - (4,943)Repayment of capital lease and hire purchase contracts (29,823) (31,635) _________ _________ 1,471,093 2,136,656 _________ _________INCREASE IN CASH 5 350,779 583,395 --------- --------- --------- --------- NOTES TO THE PRELIMINARY RESULTS 1. BASIS OF PREPARATION OF PRELIMINARY FINANCIAL INFORMATION The financial information contained in this preliminary statement does notconstitute statutory accounts as defined in section 240 of the Companies Act1985. The balance sheet at 31 December 2004 and the profit and loss account,cash flow statement and associated notes for the year then ended have beenextracted from the company's 2004 statutory financial statements upon which theauditors opinion is unqualified but contains an explanatory paragraph in respectof future funding of the company and does not include any statement underSection 237(2) of the Companies Act 1985. Those financial statements have notyet been delivered to the Registrar of Companies. The figures for the 14 monthperiod ended 31 December 2003 have been extracted from the statutory financialstatements (after the reanalysis of the profit and loss account and cashflowstatement) which have been filed with the Registrar of Companies. The auditors'report on those financial statements was unqualified and did not contain astatement under Section 237(2) of the Companies Act 1985. The financialinformation has been prepared in accordance with applicable accounting standardsand under the historical cost accounting rules. The principal accounting policies of the company have remained unchanged fromthose set out in the Company's 2003 Annual Report and Financial Statements. Theaccounts are prepared on a going concern basis, which assumes that the Companywill continue in operational existence for the foreseeable future. 2. TAXATION The tax credit represents a claim for R&D tax credit. 3. LOSS PER SHARE The loss per share is calculated by reference to the loss attributable toordinary shareholders divided by the weighted average of 14,060,383 ordinaryshares for the 12 months to 31 December 2004, and 11,531,864 for the 14 monthsto 31 December 2003. 12 month ended 14 months ended 31 December 31 December 2004 2003 Attributable loss (£) (1,111,744) (1,870,566) _________ _________Average number of ordinary shares in issuefor basic and diluted loss per share 14,060,383 11,531,864 _________ _________Basic and diluted loss per share (7.9p) (16.2p) --------- --------- --------- --------- The loss for each period and the weighted average number of ordinary shares forcalculating the diluted loss per share for each period are identical to thoseused for the basic loss per share. This is because the outstanding share optionswould not be dilutive under the terms of Financial Reporting Standard No. 14'Earnings per share' (FRS 14). 4. RECONCILIATION OF OPERATING LOSS TO NET CASH FLOW FROM OPERATING ACTIVITIES 12 months Restated 14 ended 31 months December ended 31 2004 December 2003 £ £Operating loss (1,217,995) (1,997,358)Amortisation 3,996 4,662Depreciation 32,666 150,142(Profit)/loss on sale of tangible fixedassets (2,859) 2,000(Increase)/decrease in stocks (1,285) 262,738Decrease in debtors 3,028 78,319Decrease in creditors (14,366) (176,570) _________ _________ (1,196,815) (1,676,067) --------- --------- --------- --------- 5. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS 12 months 14 months ended 31 ended 31 December December 2004 2003 £ £Increase in cash in the year 350,779 583,395Cash outflow from bank loans - 4,943Cash outflow from finance leases 29,823 31,635 _________ _________Change in net fundsresulting from cashflows 380,602 619,973Inception of finance lease (53,122) - _________ _________Movement of net funds in the year 327,480 619,973Net funds at 1 January 2004 777,271 157,298 _________ _________Net funds at 31 December 2004 1,104,751 777,271 --------- --------- 6. ANALYSIS OF MOVEMENT IN NET FUNDS At 1 Cash flow Non Cash At 31 January Items December 2004 2004 £ £ £ £ Cash at bankand in hand 813,505 350,779 - 1,164,284Finance leases (36,234) 29,823 (53,122) (59,533) _________ _________ _________ _________ 777,271 380,602 (53,122) 1,104,751 --------- --------- --------- --------- --------- --------- --------- --------- 7. RECONCILIATION OF EQUITY SHAREHOLDERS' FUNDS 31 31 December December 2004 2003 £ £ Loss for the financial year (1,111,744) (1,870,566) Issue of shares 1,500,916 2,173,234 _________ _________Increase in equity shareholders' funds 389,172 302,668 Opening equity shareholders' funds 757,273 454,605 _________ _________Closing equity shareholders' funds 1,146,445 757,273 --------- --------- This information is provided by RNS The company news service from the London Stock Exchange