Triodos Bank finance package set to propel growth in Paperback Collection & Recycling Limited
19-10-2011 | Paperback Collection and Recycling ltd has had a major boost with loans and investments from sustainable finance specialists Triodos. Triodos has provided a £570,000 finance package comprising an equity investment from the Triodos EIS Green Fund II and loan and overdraft facilities from Triodos Bank.
The company collects and recycles plastics, polythenes and textiles as well as cardboard and paper. In addition it has created its Papersave brand of services to local businesses and has recently developed a specialist consultancy advising energy technology companies on waste treatments of fuel.
"Key to this move to Triodos has been the relationship we have forged with its investment management team: at Paperback we are convinced that Triodos not only understands our business but finds that our motive to provide a socially-important service is entirely in keeping with its own mission," said Gordon Anderson, Managing Director.
"The investment from Triodos and changing banks were fundamental to delivering a five year contract for UPM, enabling Paperback to expand in equipment, staff and in process," Anderson continues.
Based at Deeside, North Wales - close to one of its largest customers, Finnish papermaker UPM's manufacturing unit - the company has an annual turnover of £1.5 million and a staff of 15.
"We are very pleased to have made this investment in Paperback. The company has a wide range of recycling capabilities - ranging from volume household paper waste handling to more specialist, mixed material recycling activities," said Dan Hird who structured the equity investment by the Triodos EIS Green Fund II.
"With ever-increasing waste volumes and landfill costs, businesses like Paperback have good prospects, and play a vital role in improving the UK's environmental performance."
A growing market sector
A recent study by accountants KPMG showed that the UK waste and recycling market is worth about £7.4 billion. It is predicted to grow by about 9.7 per cent per annum driven by strict UK and EU regulations and a heightened awareness of the importance of waste management and recycling. So much so that the UK has adopted recycling as a worthy national habit.
"Triodos EIS Green Fund II's investment in Paperback will support new capital expenditure and continued business growth," said Gordon Anderson, Managing Director of Paperback, who demonstrated his commitment to the future potential of the business by investing personal funds and by appointing a new non-executive Finance Director, David Foran.
Mark Ogden, relationship manager in Triodos Bank's Business Banking Division, said: "Many environmental companies such as Paperback seek to bank with an organisation whose mission closely matches their own.
"Our expertise and standing in the sector, combined with the competitive rate of interest on offer, means companies can now access a banking partner that truly matches their needs.
"All in all, the joint equity and debt funding we have now completed with Paperback illustrates a brilliant example of two parts of a bank working well, in tandem."
Notes to editors:
Triodos EIS Green Funds have invested in companies such as Southern Solar, Sunroof, Ariesc, Hammars Hill Energy.
Following the successful launch of the Triodos EIS Green Fund I in the 2008-09 tax year, the Triodos EIS Green Fund II was launched to invest equity in sustainable UK companies with compelling growth potential. The fund aims to take advantage of attractive investment opportunities available to Triodos through their banking and industry networks to achieve high returns for investors.
Triodos Bank already manages more than 15 investment funds throughout Europe and has over £4 billion of assets under management, including over £1 billion of funds dedicated to renewable energy. Through our Europe-wide reputation and credibility in the sustainability sector, Triodos Bank has unmatched access to potential investment opportunities. In the UK alone, we have over 2,500 business banking customers, giving a ready source of potential deal flow. Triodos EIS Green Fund II is a discretionary investment management service provided by Triodos Bank.
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