Environmental technology specialist TEG Group has raised £1.9 million at 40p to help buy Norfolk-based Banham Compost
Environmental technology specialist TEG Group has raised £1.9 million at 40p to help buy Norfolk-based Banham Compost.
AIM-quoted TEG, which recently won a part in the Greater Manchester Waste Disposal Programme, argues that acquiring Banham – hitherto a subsidiary of Banham Poultry and owner of a 28,000-tonne-per-year composting facility in a ‘prime arable farming region’ with ‘limited’ local competition – marks a ‘significant step forward’. In addition to the £1.9 million placing proceeds, AIM-quoted TEG is assuming £1.3 million of Banham Compost’s debt, taking the full acquisition cost to £3.2 million.
Steered by chief executive Mick Fishwick, Preston-based TEG says Banham Compost is now operating at only 55 per cent of capacity, but suggests this could be upped to 90 per cent by next year, with further plant expansion then on the cards as legislative and other pressures increase the use of TEG-style waste recycling. TEG, which halved its own loss to £1.65 million last year on booming turnover, claims it could soon have Banham operating on similar gross profit margins to its own.