Highlights

 Financial

Overall trading position as expected following announcements in 2007 and poor H1

Turnover was £2,169,000 (2006: £3,559,000) in the main resulting from the phased nature of capital projects in comparison to prior period; Loss for the year of £3,034,000 (2006: loss £1,257,000) increased due to investment in group resources in preparation for construction programme for Greater Manchester

Turnover during H2 increased significantly by 304% to £1,633,000 (H1: £536,000 )

First full year adoption of International Financial Reporting Standards (IFRS)

Fundraising - In March 2007 and in preparation for the Greater Manchester Waste PFI Contract and other opportunities, TEG raised £11 million before expenses by way of an institutional placing.  The placing was over-subscribed with significant institutional demand and several new investors participating

Strong outlook for trading in 2008 and beyond

Greater Manchester Waste PFI Contract 

An Advanced Works Order ("AWO") for the Contract, worth £523,000 was concluded in January 2008, with significant progress towards conclusion of main contracts (worth up to £35 million in sales orders) achieved

Extension of AWO expected early April, full contract completion 29 April 2008

Verdia Horticulture Limited ("Verdia") 

Verdia was formed in 2007 as a Joint Venture Group between TEG and Glendale Managed Services Limited to focus on the sale of high grade products into the horticulture market.  This JV represents another significant endorsement of TEG and its technology with a first plant at Hillbarton, a Glendale site near Exeter, due for completion at end of Q3 2008 

Construction and Operations 

Perth, Scotland - PPC permit modifications completed ? Board believes the plant is the first and only plant to date to achieve the higher PPC standard of licensing introduced into Scotland.  Perth had an encouraging H2 performance and was cash positive for the period. Recent contract gains indicate that the plant will be operating at full capacity by May 2008

Preston, Sherdley Farm - A second 12-cage line has been installed, increasing capacity to approx. 12,000 tonnes pa.  Following completion of a new waste receipt facility and with demand in the North West being strong, the plant has been able to ramp up to full capacity quickly. All capacity is now sold and it is expected to perform well in 2008

Todmorden, West Yorkshire - One of the UK's biggest composting plants, this 50,000 tonnes pa facility was completed to schedule with its first two lines successfully commissioned in May and June 2007.  Performance has been good and it is anticipated that existing capacity will be filled and new capacity added by mid 2008

Greater Manchester Waste Ltd - TEG secured a two year £900,000 interim waste management contract for green waste supply into Todmorden and Sherdley Farm

Four Local Authority Contracts to supply separately collected kitchen waste to Todmorden and Sherdley Farm.  Contract also secured with Veolia for up to 9,000 tonnes per annum of garden waste, on a renewable contractual basis.  Aggregate value of contracts between £245,000 - 350,000 per annum

Gwynedd Council - Construction of facility commenced in September 2007 and work continues on schedule for hand over in April 2008 - approx. £1.45m contract to supply TEG Silo Cage plant and equipment

Swansea & Banham, Norfolk - During H1 2007 TEG completed handover of both facilities

Commenting, Nigel Moore, Non-Executive Chairman, TEG Group Plc, said: 

"As previously announced, the Group's pipeline of opportunities is stronger than ever and it is actively bidding for in excess of 30 significant contracts in addition to a large number of smaller waste sales opportunities". 

"In addition, the market continues to strengthen and is projected to do so for the foreseeable future.  The success of the TEG facilities to date and the endorsement demonstrated by the Greater Manchester, Verdia and Gwynedd contracts further strengthens the Board?s belief that the Group has an exciting future and significant growth can be anticipated".