Derek Pain: Not easy being green with TEG, but I'm bowled over by Essenden
Saturday 07 June 2014
I have been thinking about dumping TEG, the environmental group, from the no pain, no gain portfolio. The shares, enlisted 30 months ago, have been a bitter disappointment. I don't think the price has ever been in the black; it is now around 5.5p compared with the 8p recruitment level.
But after studying the group's yearly report that arrived last week, I have decided to give the shares one last chance. The company has for long offered much promise but has failed to deliver. There is, however, the possibility it is at last seeing the wood from the trees and maybe more prosperous days are not too far away.
It's true that last year was a difficult one for the group that develops and operates composting and energy plants – the sort of occupation that should win acclaim in this green-conscious age. But losses came out at £2.5m against just over £1m in 2012. As far as I can trace, TEG has always found it tough turning ambition into hard cash. Its fall from grace is illustrated by its shares which, in distant days, topped 150p.
It was hopes of better times that encouraged me to initially enlist the shares. Perhaps I am being naive as similar thoughts have prompted my stay of execution. Yet despite the significant increase in losses, there are distinct signs of improvement. For example, the Dagenham composting plant has recently opened. It can accommodate 50,000 tonnes of food and green waste a year, provide power that will be sold to the National Grid as well as tonnes of compost for agricultural use. TEG has a 24.5 per cent stake and will run the facility, generating £1.3m a year. A similar plant is planned at Gaydon, Warwickshire,
In addition, the group's Perth plant, which turns food waste into electricity, seems to be progressing well and there appears every possibility that the long-running problems involving its interests in the Manchester area are near to being resolved, which would benefit the income stream.
I don't expect TEG to be transformed overnight. The shares remain speculative. But it is in a go-go industry and investors may not have caught up with the possible change in fortunes.
I still have reservations about Animalcare, the veterinary products group recruited the same time as TEG, and will probably sell the shares in the not too distant future.
One share I regard as a firm hold is Essenden, the ambitious tenpin bowling chain. True, the shares have lost ground since the capital reorganisation. At one time they topped 100p, but are now around the 66p mark.
I suppose the decline was inevitable as so many new shares flooded on to the stock market as loan notes were exchanged for much more tradeable shares. But the group continues to perform well and I have a sneaking suspicion that the transformational deal chief executive Nick Basing has in mind may not be far away. One possibility could be another tenpin bowling business.
Mr Basing, in a recent trading update, said like-for-like sales in the first 20 weeks of the year were up 6.1 per cent. The advance was being converted into improved site performances, compensating for closed bowling ventures on short leases.
Essenden expects "further financial progress" this year, although the World Cup in Brazil could impact on sales in the next few weeks. Still, it's an ill wind... other portfolio constituents, such as Marston's and Spirit Pub Co. should be among the beneficiaries of the extravaganza of international football.
Independent Partners; request a free guide on NISAs from Hargreaves Lansdown
Actress sees off speculation about her appearance in an amazing way
Review: Despite an uphill climb to see Jake Bugg in action, his performance is notably flat
Powerful images of strays taken moments before being put down
Mark Dampier: Woodford’s young companies could be the stars of the future
The best - and worst - investments in 2013
Money round-up video: Low-rate mortgages; comparison sites; ethical finances
Nationwide forced to apologise again over online banking problems
Bargain Hunter: Cut-price radiator reflectors can stop all that heat going to waste
- 1 Renee Zellweger on plastic surgery reports: 'I'm living a fulfilling life and I'm thrilled that perhaps it shows'
- 2 Salisbury ranked seventh-best city in the world to visit in Lonely Planet’s Best in Travel 2015
- 3 Disney announces new female-led film Moana
- 4 Banksy not arrested: Internet duped by fake report claiming artist's identity revealed
- 5 Russell Brand threatened with arrest after filming outside Fox News headquarters
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
Of course, teenage girls need role models – but not like beauty vlogger Zoella
London bus driver 'kicks gay couple off for kissing'
Jose Manuel Barroso warns David Cameron against making 'historic mistake' over immigration reforms
iJobs Money & Business
£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...
£18000 - £23000 per annum + Commission: SThree: The SThree group is a world le...
£18000 - £23000 per annum + Comission: SThree: The SThree group is a world lea...
£20000 - £25000 per annum + OTE £Competitive: SThree: SThree Group and have be...
Day In a Page
This 17th century beauty is full of rustic cosiness, while the detached home office means you can also run a business
This five-bedroom red-brick beauty overlooks the village green and sits in just under two acres of land
Four exclusive apartments in a Grade II-listed former medical school with 2,275 sq ft of living space and 18ft ceilings
A five-bedroom terraced house on the popular Peterborough Estate, ideally located for both Eel Brook Common and South Park
A state-of-the-art farm-building conversion on the former Cliveden Estate, with 11,420sq ft of internal space, cinema and wine cellar
A three-bedroom, 15th-century cottage with original features in the picturesque village of Sissinghurst
A six-bedroom terraced house with large south-facing roof terrace, cinema room and wine cellar
A new seven-bedroom home built in Queen Anne-style with swimming pool and parkland views in Mortimer
A listed, four-bedroom farmhouse in the rural hamlet of Rushall with detached barn, four acres of gardens and paddocks
A first-floor flat with two bedrooms, a spacious reception room and communal grounds in a leafy part of London
A three-bedroom flat with a spacious rootop terrace and balcony, accessed from a private gated courtyard
A Grade II-listed pile with six bedrooms, stables and 39 acres of grounds in Standlake
A two-bedroom flat with boutique hotel-style interiors, close to the foodie haunt of West End Lane
A two-bedroom flat in a beautiful old vicarage, with many original features, close to the city centre
A three-bedroom 16th-century home with an aga kitchen, private gardens and heated outdoor pool, in Hadleigh
A three-bedrom home in sought-after Queen's Gate Mews, with Italian marble-finished bathrooms
Surrounded by glorious countryside in the village of Udimore, sits this impressive four-kiln oast and barn conversion
A five-bedroom house in the picturesque village of Kettlewell, north Yorkshire
An 18th-century former coaching inn with original staircase, open fireplaces and beams throughout
A Grade II-listed Georgian town house with three bedrooms and a south-facing courtyard, near Arundel Castle
Feel on top of the world at this über chic penthouse on the 37th floor of one of Europe’s tallest blocks.
A Grade II-listed Victorian villa with six bedrooms and two further cottages, all with spectacular sea views
A grade II-listed, Georgian cottage with mature 50ft garden, perfect for summer entertaining
A magnificent Georgian pile with turrets, seven bedrooms, a heated pool and four acres of gardens
Fairoak Farm has five bedroom suites, gym, outdoor swimming pool and golf course
Chic two-bedroom river-fronted flat with a private lift that delivers you directly to your home
A spectacular seven-bedroom Tudor pile, once owned by Henry VIII, with 18 acres of land
A seven-bedroom Georgian property previously used as a picturesque wedding venue
A split-level flat in a church conversion with two en suite bedrooms and 1,200sq ft of living space
A three-bedroom bungalow situated behind an impressive stone wall, £645,000
Windsor Castle overlooks this three-bedroom Victorian cottage located on one of Windsor's smartest roads
Chapel House is a former vicarage with nine bedrooms in the beautiful Upper Wye Valley
A five-bedroom B&B and separate owner's accomodation with potential for conversion
Enjoy summer by the Thames in this two double-bedroom converted warehouse in Rotherhithe village
A one-bedroom, luxury apartment with private gym and concierge service in Moorgate
A four-bedroom house in Hermitage Gardens with three reception rooms and landscaped gardens
A seven-bedroom Grade II-listed property with a separate self-contained apartment
A five-bedroom Victorian house with three reception rooms and galleried landing, £695,000
A six-bedroom farmhouse with five acres of land in a former cloth-making village