Derek Pain: Not easy being green with TEG, but I'm bowled over by Essenden

 

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

News
people
Sport
FootballGerman sparks three goals in four minutes at favourite No 10 role
News
Rumer was diagnosed with bipolarity, attention deficit hyperactivity disorder and post-traumatic stress disorder: 'I was convinced it was a misdiagnosis'
peopleHer debut album caused her post-traumatic stress - how will she cope as she releases her third record?
Sport
A long jumper competes in the 80-to-84-year-old age division at the 2007 World Masters Championships
athletics
PROMOTED VIDEO
Sport
Radamel Falcao was forced to withdraw from the World Cup after undergoing surgery
premier leagueExclusive: Reds have agreement with Monaco
Arts and Entertainment
'New Tricks' star Dennis Waterman is departing from the show after he completes filming on two more episodes
tvOnly remaining original cast-member to leave long-running series
Life and Style
Walking tall: unlike some, Donatella Versace showed a strong and vibrant collection
fashionAlexander Fury on the staid Italian clothing industry
Arts and Entertainment
Gregory Porter learnt about his father’s voice at his funeral
music
Arts and Entertainment
tvHighs and lows of the cast's careers since 2004
Life and Style
Children at the Leytonstone branch of the Homeless Children's Aid and Adoption Society tuck into their harvest festival gifts, in October 1936
food + drinkThe harvest festival is back, but forget cans of tuna and packets of instant mash
Sport
Lewis Hamilton will start the Singapore Grand Prix from pole, with Nico Rosberg second and Daniel Ricciardo third
F1... for floodlit Singapore Grand Prix
New Articles
i100
Life and Style
Couples have been having sex less in 2014, according to a new survey
life
Finacial products from our partners
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Senior BA - Motor and Home Insurance

    £400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...

    Market Risk & Control Manager

    Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...

    SQL Developer - Watford/NW London - £320 - £330 p/d - 6 months

    £320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...

    Head of Audit

    To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...

    Day In a Page

    Scottish referendum: The Yes vote was the love that dared speak its name, but it was not to be

    Despite the result, this is the end of the status quo

    Boyd Tonkin on the fall-out from the Scottish referendum
    Manolo Blahnik: The high priest of heels talks flats, Englishness, and why he loves Mary Beard

    Manolo Blahnik: Flats, Englishness, and Mary Beard

    The shoe designer who has been dubbed 'the patron saint of the stiletto'
    The Beatles biographer reveals exclusive original manuscripts of some of the best pop songs ever written

    Scrambled eggs and LSD

    Behind The Beatles' lyrics - thanks to Hunter Davis's original manuscript copies
    'Normcore' fashion: Blending in is the new standing out in latest catwalk non-trend

    'Normcore': Blending in is the new standing out

    Just when fashion was in grave danger of running out of trends, it only went and invented the non-trend. Rebecca Gonsalves investigates
    Dance’s new leading ladies fight back: How female vocalists are now writing their own hits

    New leading ladies of dance fight back

    How female vocalists are now writing their own hits
    Mystery of the Ground Zero wedding photo

    A shot in the dark

    Mystery of the wedding photo from Ground Zero
    His life, the universe and everything

    His life, the universe and everything

    New biography sheds light on comic genius of Douglas Adams
    Save us from small screen superheroes

    Save us from small screen superheroes

    Shows like Agents of S.H.I.E.L.D are little more than marketing tools
    Reach for the skies

    Reach for the skies

    From pools to football pitches, rooftop living is looking up
    These are the 12 best hotel spas in the UK

    12 best hotel spas in the UK

    Some hotels go all out on facilities; others stand out for the sheer quality of treatments
    These Iranian-controlled Shia militias used to specialise in killing American soldiers. Now they are fighting Isis, backed up by US airstrikes

    Widespread fear of Isis is producing strange bedfellows

    Iranian-controlled Shia militias that used to kill American soldiers are now fighting Isis, helped by US airstrikes
    Topshop goes part Athena poster, part last spring Prada

    Topshop goes part Athena poster, part last spring Prada

    Shoppers don't come to Topshop for the unique
    How to make a Lego masterpiece

    How to make a Lego masterpiece

    Toy breaks out of the nursery and heads for the gallery
    Meet the ‘Endies’ – city dwellers who are too poor to have fun

    Meet the ‘Endies’ – city dwellers who are too poor to have fun

    Urbanites are cursed with an acronym pointing to Employed but No Disposable Income or Savings
    Paisley’s decision to make peace with IRA enemies might remind the Arabs of Sadat

    Ian Paisley’s decision to make peace with his IRA enemies

    His Save Ulster from Sodomy campaign would surely have been supported by many a Sunni imam