Compost and anaerobic digestion firm TEG Group has announced a £1.3 million loss for the year up to 31 December 2011.
This compares to a £464,000 loss in 2010 with revenue down in 2011 to £17.8 million compared to £20.7 million in 2010.
TEG Group non-executive chairman Nigel Moore said: “The last year has proved to be challenging for the company, and in particular the difficulties faced by the industry in securing project finance have had a significant impact, resulting in long delays and disappointments in losing key projects that the company had worked hard to secure.
“Moreover, this has resulted in a major impact on revenues and cash flow. The board had taken all the steps it could to secure funding and its strategic review considered all the options open to the company.
“Nevertheless, market demand remains strong and with a secure funding position at the project level, the group will be well placed to continue to take advantage of the expanding market. TEG maintains a strong pipeline of tender opportunities and anticipates the successful conclusion of further projects in 2012.”
The company also revealed that it had won a new seven-year contract with South Staffordshire District Council to process green waste at its Simpro Coven facility in Staffordshire. This will mean it treating between 10,000 to 15,000 tonnes per annum of green waste with revenue expected to be £1.5 million to £2 million over the life of the contract.
TEG Group also said that its formal sales process that it began in January was now ended. It revealed that it had received approaches by its March deadline, but the board did not believe a transaction could be completed in a reasonable time and as a consequence the board has decided to terminate the formal sales process.
On the same day, it also announced a new share offer to existing shareholders that it hopes will raise £2 million. This open offer of new ordinary shares to shareholders will be on the basis of 57 ordinary new shares for every 100 existing shares held at a price of 3 pence.