UPDATE 1-TEG swings to H1 profit; sees continued growth

* H1 pretax profit 55,000 pounds vs loss of 535,000 pounds

* Revenue in line with its view at 4.5 mln stg

* Says observing very good market growth

* Shares rise 2.5 pct (Adds details)

Sept 15 (Reuters) - TEG Group Plc (TGE.L), an in-vessel composting technology provider, swung to a first-half profit and said it expected overall growth in 2009 and beyond.

The company, which provides Silo Cage technology to treat animal by-product waste, said on Tuesday it was observing very good market growth and a continued increase in interest in the organic waste sector.

For the half year ended June 30, the company's pretax profit was 55,000 pounds ($91,340), after share based administration expenses and an exceptional gain of 851,000 pounds related to negative goodwill on the acquisition of Banham Compost Ltd in June.

It posted a pretax loss of 535,000 pounds a year earlier.

TEG said first-half revenue was in line with its expectations at 4.5 million pounds, down from 6.6 million pounds a year ago, reflecting anticipated project milestone scheduling for 2009 that is loaded towards the second half.

TEG shares were up 2.5 percent at 42 pence at 0736 GMT on the London Stock Exchange.

($1=.6021 Pound) (Reporting by Balachander Surianarayanan in Bangalore; Editing by Anne Pallivathuckal)