A Slough-based waste recycling company is set to double turnover to £10 million by 2011 with the backing of an asset based lending package (ABL) from Lloyds TSB Commercial Finance.
Established in 2008, Simply Waste Solutions collects waste and recyclable materials from businesses across a range of sectors, including major food retailers such as Waitrose and Tesco.
Operating from a 40,000 sq ft site in Langley, the firm has capitalised on increasing demand for affordable waste recycling and is on course to achieve a turnover of £5 million in its first year.
It is now targeting a £10 million turnover by 2011 by rolling out the business to other areas of the UK and by offering a number of new services, such as mixed recycling and dedicated food waste collection.
To support its rapid growth and boost cash flow, management approached the company’s banking partner Lloyds TSB Commercial, which introduced the firm to its ABL division.
Lloyds TSB Commercial Finance provided an invoice discounting facility that advances the cash tied up in the company’s sales ledger, enabling it to bridge the gap between the initial outlay required to service contracts and receiving payment from its customers.
The firm is also planning to hire a further five members of staff in the next year, taking headcount to 30.
James Capel, managing director of Simply Waste Solutions, said: “Starting a new business in the current climate has certainly been challenging, but at Simply Waste Solutions we believe our quality of service, flexible approach and focus on new and innovative services has been the key to success.
“The cash flow boost provided by Lloyds TSB Commercial Finance’s ABL package has enabled us to target bigger contracts and secure these new orders, increasing turnover.
“The speed with which a suitable finance package was developed was impressive, and ensured we can continue to expand rapidly and do not need to turn away any new business due to a lack of working capital.”
Stuart Baty, regional manager for Lloyds TSB Commercial Finance, said: “Simply Waste Solutions is a great example of a business that is thriving during the downturn by diversifying its services and expanding its geographical footprint.
“The size of the company means it is more flexible than its larger, more established competitors and it has been able to adapt quickly to the rapidly changing market of waste disposal.
“ABL is an ideal funding solution to support the firm’s growth, as it releases the value of the company’s sales ledger to quickly inject cash into the business when needed, enabling management to seize growth opportunities as and when they arise.”
Neil Carr, relationship manager for Lloyds TSB Commercial, said: “It’s great to see Simply Waste Solutions thriving during the recession, implementing its expansion plans and hiring new staff.
“We’re committed to helping our customers find the right funding solution for their needs, and being part of a large group means we can draw on variety of sophisticated lending products, not just traditional loans and overdrafts.”
August 2009