TEG Group – at last some really positive news
TEG Group the AIM quoted green technology company, which converts organic wastes into natural organic fertiliser, announced today that it is a principal sub-contractor to the consortium that has been awarded preferred bidder status for the Greater Manchester Waste PFI contract.
TEG is apparently the exclusive supplier of In Vessel Composting ("IVC") technology to the consortium.
Over the period from 2007 to 2010 it is expected to build 4 plants as part of the consortium with the combined capacity of the plants 180,000 tonnes per annum, producing 125,000 tonnes of compost product per annum -lovely stuff!
The plants will all process green waste and kitchen waste collected from households in the Greater Manchester region. Depending upon the final scope of supply, the total value of the construction projects to TEG will be up to £35m over the period 2007 to 2010.
The PFI contract is the largest waste management contract offered to date in
Europe.
It should be emphasised that contracts will only become binding on financial closure, which is predicted to be achieved by June 2007.
This is obviously a fantastic contract win for TEG and the shares reacted very positively rising c30%. However, i'm still not sure what this means in terms of profit.
TEG is a very interesting and indeed commendable business, however, it also remains a business with a current market cap of c£37m that has spent an awful lot of money already in commercialising its waste technology. A few more contract wins like today’s (with profit indications) and I really might start to get excited!
Many predict that ‘green is the theme’ this year for AIM and TEG could be a major beneficiary of increased interest in green minnows. It’s all down to the delivery now.
TEG is apparently the exclusive supplier of In Vessel Composting ("IVC") technology to the consortium.
Over the period from 2007 to 2010 it is expected to build 4 plants as part of the consortium with the combined capacity of the plants 180,000 tonnes per annum, producing 125,000 tonnes of compost product per annum -lovely stuff!
The plants will all process green waste and kitchen waste collected from households in the Greater Manchester region. Depending upon the final scope of supply, the total value of the construction projects to TEG will be up to £35m over the period 2007 to 2010.
The PFI contract is the largest waste management contract offered to date in
Europe.
It should be emphasised that contracts will only become binding on financial closure, which is predicted to be achieved by June 2007.
This is obviously a fantastic contract win for TEG and the shares reacted very positively rising c30%. However, i'm still not sure what this means in terms of profit.
TEG is a very interesting and indeed commendable business, however, it also remains a business with a current market cap of c£37m that has spent an awful lot of money already in commercialising its waste technology. A few more contract wins like today’s (with profit indications) and I really might start to get excited!
Many predict that ‘green is the theme’ this year for AIM and TEG could be a major beneficiary of increased interest in green minnows. It’s all down to the delivery now.