Com-vert is set to break into the bio-fuels market and expand to a new site with funding from Lloyds TSB

A green waste recycling and composting business based in Northumberland, is set to break into the bio-fuels market and expand to a new site after securing a £100,000 factoring facility from Lloyds TSB Commercial Finance alongside an Enterprise Finance Guarantee (EFG) loan from Lloyds TSB Commercial.

Com-vert takes garden waste from local authorities, businesses and gardeners and recycles it to produce compost which is approved by the Soil Association to use on organic farms. The products can also be purchased by the general public at local recycling centres.

Set up by Joe and Dan Robinson in 2002 to diversify the family farm’s output, Com-vert has gone from strength to strength, helping councils including Sunderland City Council and Northumberland County Council to reach recycling targets set by legislation such as the EU landfill directive.

The company, which employs five people, also has plans to move into the bio-mass market, which involves converting solid pieces of garden waste, into bio-fuels which can be used as a carbon neutral alternative to fossil fuels.

To capitalise on growing demand for its services and to branch out into the production of bio-fuels, Com-vert found it needed a cash flow boost.

Lloyds TSB Commercial Finance devised a factoring facility which leverages the value of the firm’s sales ledger, boosting cash flow and allowing Com-vert to move to a new site in Shilbottle, Alnwick.

The funder was introduced to the business by its banking partner, Lloyds TSB Commercial, which also provided the firm with a £125,000 Enterprise Finance Guarantee (EFG) loan.

The new recycling centre has improved transport links, reducing road miles and enabled more advanced machinery to increase output in-line with demand and the business hopes to boost turnover to £500,000 by the end of the year.

Dan Robinson, managing director at Com-vert, said: “The farm has been in our family for 150 years and, as the agriculture market evolves and becomes more competitive, we spotted an opportunity to break into the organic recycling market, diversifying our output and increasing turnover.

“Now, eight years on, Com-vert is branching out again to supply bio-fuels and increase its recycling capacity. This means we will be able to recycle garden waste into a sustainable and useful product. 

“The funding from Lloyds TSB has ensured Com-vert is in an excellent position for future growth and we hope to be a pioneering business in the bio-fuels market.”

Peter Bould, regional manager at Lloyds TSB Commercial Finance, said: “Increasingly businesses and local authorities have to be aware of legislation, to reduce the amount of rubbish that is sent to landfills.

“Com-vert’s services help customers become more environmentally friendly and as a result, it has established itself as a successful, innovative company. Diversifying the business to provide bio-fuels will further reinforce this reputation.

“The factoring facility provided by Lloyds TSB Commercial Finance is ideal for expanding companies as it grows in-line with sales and guarantees a steady flow of capital to fund development.”

Wendy Ramshaw, business development manager at Lloyds TSB Commercial, added: “Dan has a clear business strategy which he is very passionate about and we were pleased to be able to work with him to devise a suitable funding solution to support Com-vert’s growth.”

November 2010