UK Top 50 fastest growing waste management companies

The journal CIWMfor wasTe & resource managemenT professionalsMeet The Industry’s 50 Fastest Growing CompaniesINSIDE: Futuresource 2010 Conference Programme RevealedThe CIWM JournalFebruary 2010100 years1910 - 2010FInAnCEWaste’s Fast Fol owing on from their article on the waste industry’s top 20 companies, Mark Wilson and Robert Pearce of Catalyst Corporate Finance turn their attention to the 50 fastest growing companies in the waste industry, as introduced by Ben WoodThe phrase “in the current economic climate” has become a staple of our vocabulary in the last 12 months, but I make no apologies for using it again here when I say that when I was offered the opportunity to run an article on the fastest 50 growing businesses in the waste industry, my response was: “Some positive stories on business growth? In the current economic climate? Yes please!”Our colleagues at Catalyst Corporate recognised names – the aforementioned our second placed business starting Finance, the company behind our Biffa, along with Grundon, Cory, Hills operation in only 2006! Organic successful “Top 20” series of articles Waste Solutions and Bywaters – making growth has also been a prominent carried out the research and have further strides forward, but it is some feature of the top 50 but, once again, provided us with an impressive list of newer names that have burst into the our second placed business proves the 50 waste-based businesses that are top 10.exception to the rule having completed beating the recession to return some Equipment suppliers and manufacturers three bolt-on acquisitions.very impressive figures… as the table accounted for eight of the top 50, while “The waste industry’s Fast 50 makes opposite shows. However, in the organics, plastics, aggregates, electricals, fascinating reading because there is tradition of all good chart countdowns, paper, glass, clinical waste, landfill and so much movement in candidates that you’ll have to turn the page to uncover mobile phones were all represented, qualify as private groups,” said Mark those from 10 to two, with our winner showing that recyclers across the board Wilson. “We expect other new entrants profiled on page 22.were capable of achieving growth.in next year’s review as larger players What I can tell you now, without Catalyst also noted that more than dispose of their non-core subsidiaries giving the game away, was that the 20 percent of the companies listed and they enter private or financial company that tops the list really was a were backed by a private equity firm, ownership.”run-away winner. A compound annual including our number one and two Verdant and Shore Recycling would growth rate of more than 170 percent placed businesses. Outside of the top have both been included in the 50, had saw it more than double that of even the 10, these also included Enviroco, AWS they not been acquired, according to second-placed business.Eco Plastics, OSS Environmental, MRS Catalyst’s criteria (fully explained on Of course, posting any positive Environmental, PHS All Clear, Agrivert, page 22), while Wilson added: “The growth rate should be considered a Cory Environmental and Biffa.full effects of commodity price volatility major success, and those businesses Catalyst also looked at the size of the and reduced commercial and industrial such as Glasdon, Ramshorn and Biffa, businesses listed, noting that the majority waste levels have not yet been reflected placed at 48, 49 and 50 in the list, have annual sales of less than £50m (84 in the reported figures, so we can have themselves delivered a fantastic percent), with just eight of the top 50 expect the 2011 Waste Fast 50 to look a performance, which brings us nicely achieving sales of more than £50m.little different.”onto a breakdown of the primary sectors The majority of businesses listed have Congratulations to our top 10, and of the Waste Fast 50.also been in existence for a number of especially to our outstanding winner, Waste management businesses years – typically more than a decade. and we hope you find the data makes accounted for 34 percent of the top Despite that statistic, the top two interesting reading… and here’s to 50, with some of the industry’s most businesses are both relatively young – further industry growth in 2011. CIWM18CIWM February 2010FInAnCECompanyPrimary BusinessLFYCAGRTurnoverWebsite11Enviroco LimitedHazardous / Oils200838 28,197 cutwastecosts.com12AWS ECO Plastics LimitedPlastic200832 10,193 jayplas.co.uk13Futur LimitedEquipment200829 16,308 futurwaste.co.uk14Stirling Fibre LimitedPaper200828 20,856 stirlingfibre.co.uk15G.B.N. Services LimitedSkips200827 7,902 gbnservices.co.uk16OSS Environmental Holdings LtdHazardous / Oils200825 24,964 ossgroupltd.com17Ascot Environmental Limited1Equipment200825 65,731 planetgroup.co.uk18T J Transport LimitedAggregates200825 14,393 tj-waste.co.uk19ECO Sustainable Solutions LimitedOrganic200824 5,634 thisiseco.co.uk20Centrol Recycling Group LimitedRegional WM200823 19,537 centrolgroup.co.uk21Avondale Environmental LimitedLandfill200823 22,963 avondalelandfill.co.uk22Roydon Holdings LimitedPlastic200819 17,875 roydon.com23Environmental Waste Controls LtdRegional WM200819 23,526 ewc.eu.com24Blue Machinery (Spares) LimitedEquipment200918 6,083bluemachinerycentral.com25WasteCare2Electrical200817 18,449 wastecare.co.uk26Harpers Environmental LimitedOrganic200916 8,448 eharper.co.uk27MRS Environmental Services LimitedRegional WM200816 25,808 28Grundon Waste Management LtdRegional WM200816 82,321 grundon.com29Cleansing Service Group LimitedRegional WM200815 44,367 csgwasteman.co.uk30O’Donovan (Waste Disposal) LimitedSkips200815 11,928 odonovan.co.uk31PHS All Clear LimitedRegional WM200914 52,936 phs.co.uk32Silent Valley Waste Services LimitedRegional WM200913 6,841 33H. Sivyer Transport LimitedAggregates200813 12,166 hsivyer.com34Cumbria Waste Management LtdRegional WM200912 13,488 cumbriawaste.co.uk35Agrivert LimitedOrganic200812 7,940 agrivert.co.uk36Cliniserve LimitedClinical200912 12,081 cliniserve.co.uk37Hills Waste Solutions LimitedRegional WM200811 53,916 hills-group.co.uk38Reuse Collections LimitedGlass200811 30,129 berryman-uk.co.uk39Premier Waste (UK) Holdings PLCRegional WM200811 5,226 premierwasteuk.com40ACM Waste Management PLCEquipment200910 9,986 acmplc.com41Devon Waste Management LimitedRegional WM2009916,652devonwaste.co.uk42Bywaters (Leyton) LimitedRegional WM20098 25,567 bywaters.co.uk43Taurus Waste Recycling (Holdings) LtdSkips20088 12,040 taurus-waste.com44Whale Tankers LimitedEquipment20088 24,650 whale.co.uk45Castle Environmental LimitedHazardous / Oils20088 11,392 castle-environmental.co.uk46Chambers Waste Management PLCRegional WM20088 11,137 chambers-group.co.uk47Cory Environmental Holdings LtdNational WM20087201,518coryenvironmental.co.uk48Biffa LimitedNational WM20084776,500 biffa.co.uk49Ramshorn LimitedEquipment20084 17,640 skipunits.co.uk50Glasdon Group LimitedEquipment20083 32,274 glasdon.comTable 1: the Waste Fast 50 companies as ranked from 50 to 11 1 Ascot Environmental Limited is the primary trading entity within UK Capital Venture (Holdings) Limited 2 WasteCare is the trading name of Silver Lining (Holdings) LimitedLFY refers to the latest financial year for which data was availableCAGR refers to the company’s compound annual growth rateTurnover is measured in thousands GBP for the last available yearFebruary 2010 CIWM19FInAnCERiverdale Paper PLCGSS Support Services LimitedPrimary Business: PaperPrimary Business: Regional WMLFY: 2008LFY: 2009CAGR: 39%CAGR: 50%Turnover: 7 281Turnover: 7 442Web: www.riverdalepaper.plc.ukWeb: www.gdd-supportservices.co.ukTHE RIVERDAlE Paper Group started life as Riverdale GSS, AS its name suggests, is a multi-service support Recycling, offering services for the recovery and recycling organisation, providing a range of specialist services in of all types of paper and board. The organisation has areas that are non-core activities for its clients, including grown through the addition of other business services waste management, recycling and cleaning services, and now consists of three separate, specialist divisions of hence its inclusion in the Waste Fast 50.security shredding, paper recycling and waste recovery. With access to UK, European and worldwide recycling Riverdale Security Shredding now provides a markets, GSS’ waste management services include comprehensive data destruction service, encompassing fully managing its clients’ waste streams and generating the secure disposal of all types of digital media and revenues, while it has also developed an expertise in equipment, whilst the Group’s recycling services have managing WEEE, but its primary goal remains waste broadened to include all types of waste recovery and minimization. It strives, where possible, to return recycled disposal with the establishment of Riverdale Waste.materials to its clients to make a truly closed loop system.Celtic Recycling LimitedEnpure Holdings LimitedPrimary Business: ElectricalPrimary Business: EquipmentLFY: 2008LFY: 2009CAGR: 39%CAGR: 51%Turnover: 7 838Turnover: 81 417Web: www.celtic-recycling.co.ukWeb: www.enpure.co.ukCElTIC RECYClInG describes itself as a specialist in the EnPURE IS a process engineering business offering services recovery and recycling of end of life heavy electrical from design through to construction for the environmental equipment, as well as hazardous waste treatment and and industrial sectors. Operating in the UK and overseas, disposal, and it has used the skills developed in response the company turned its attention to the solid waste market to the electricity industry demands to grow its business early in 2000 and is one of three businesses in the top 10 in other sectors with plant or equipment disposal needs, to be backed by a private equity firm – Spirit & Maven. such as rail network operators and major power users.It is a design-led business supported by effective project Based in Bridgend since 1993, the company has made delivery. It offers services from concept and feasibility notable strides, with 2010 seeing it set to look at making studies, through design and build, to operational support innovative use of bar code technology to track movements services. Enpure offers both its own key technologies of hazardous and non-hazardous waste consignments for and those of others, including autoclaving, aerobic and enhanced auditing and monitoring purposes.anaerobic MBT, materials recover and fuel preparation.Choice Waste Management LimitedJ&A Young (Holdings) LimitedPrimary Business: ExporterPrimary Business: PlasticLFY: 2008LFY: 2008CAGR: 39%CAGR: 56%Turnover: 16 329Turnover: 43 525Web: www.choicewastemanagement.comWeb: www.jayplas.co.ukCHOICE WASTE Management recycles plastic, paper ESTABlISHED In 1975, J&A Young leads the and cardboard waste. The company was established plastics specialists in the Waste Fast 50 – a strong by Rizwan Iqbal in 1997 after identifying opportunities category with three companies in the top 25.throughout the world in waste recycling, and started by Its five sites, covering Birmingham, Loughborough, exporting plastic packaging waste. Derby and Manchester employ the latest technologies From its small origins the company has since grown and the company currently collects and recycles into an organisation that is now an accredited exporter post-consumer waste from several major retailers, which of packaging waste (being able to issue PERns), a is used in the production of refuse sacks and builders registered waste carrier and also registered as an film, to name just a couple of the recycled products on exporter of waste materials to China with the General offer. Its sorting plant in Derby is the only plastic sorting Administration of Quality Supervision, Inspection & facility in the UK capable of separating all polymers Quarantine of the P.R. of China (AQSIQ).within a plastic bottle grade, by both type and colour.20CIWM February 2010FInAnCEHW Martin Waste LimitedReconomy (Holdings) LimitedPrimary Business: Regional WMPrimary Business: Regional WMLFY: 2009LFY: 2008CAGR: 62%CAGR: 84%Turnover: 26 704Turnover: 74 527Web: www.hwmartin.comWeb: www.reconomy.comTHE MARTIn Group of companies has delivered public and private works contracts for over 30 years. The Group’s key areas of activity are waste recycling and management; traffic management systems; commercial fencing and vegetation management; permanent and temporary road safety barriers; and plant and vehicle provision and maintenance.The waste recycling and management division, HW Martin Waste ltd, collects, separates, bales and provides re-processors with glass, plastics, paper, card, metals, concrete & rubble, wood and garden waste. Recycled materials go back into the manufacturing process to make new products including bottles, paper and aggregates. The green waste is composted and used in agriculture, horticulture and domestic gardens. The companies waste management services also include operating household waste recycling centre’s, Materials Recycling Facilities and managing transfer stations and collection contracts. HW Martin has a rolling programme of research into OF All the companies in the Fast 50 Reconomy was new outlets for recyclable materials. The company one of only a few to be formed less than 10 years diverts over 300 000 tonnes of recyclable material ago and is one of only 20 percent of businesses to be each year and it says “none of it goes to landfill”.PE backed. It was also recognised for adopting the “buy and build” strategy whereby a company initially invests in a business platform and then acquires smaller Community Waste Ltdbusiness to bolt on. Primary Business: Regional WMReconomy Holdings ltd was formed in July 2006 LFY: 2009to develop a business in the UK recycling and CAGR: 68%waste management sector. To date, is has made 12 Turnover: 14 519acquisitions and the business has annualised turnover of Web: www.communitywaste.orgapproximately £80m.The largest part of the group is currently Reconomy AT A time when many businesses are diversifying in Solutions, the leading national outsourced waste order to grow, it is refreshing to read almost immediately services provider, which operates nationwide recycling on Community Waste’s website that it considers itself a focused waste management and compliance services.“recycling company” not a “waste management business”. In addition, Reconomy has to date acquired a total of Among the services it offers, however, is not only the seven businesses, operating in the East Midlands and handling of recyclable waste, but the design, construction East Anglia regions, providing a broad range of recycling and operation of materials recovery facilities (MRFs), the and waste management services to customers in the marketing of recyclable materials and a full audit trail.commercial and industrial sector. These businesses Working with paper, glass, plastics and metals, have been re-branded as Reconomy Oakley, Reconomy Community Waste currently handles 200 000 tonnes of Alibone and Anglia Recycling. These brands are being recyclables per annum and it has its own environmental developed through further investment in sorting and objective to achieve 100 percent diversion from landfill by processing facilities in order to minimise the amount of finding new markets for all other materials that are part of waste going to landfill. its own dedicated Materials Expansion Research Program.Reconomy completed the acquisition of nutrafeed, a The company has four MRFs, in West Oxfordshire, company specialising in recycling packaged food wastes, Doncaster, Sheffield and Milton Keynes (MK), with the based in Wrexham. 93 000 tonne per annum MK site standing as an example of Mark Wilson, Catalyst Corporate Finance, said: Community Waste’s expertise in design, construction and “Reconomy is a well known example of a private operation. In December 2009 it signed a 15-year, £150m equity backed waste business pursuing a rapid contract to continue sorting dry recyclables on behalf of buy-and-build strategy. I know that it is well known Milton Keynes Council – the sort of development that to many regional operators and there is a lot of has helped propel the company into the top three fastest interest throughout the industry as to how successful growing waste businesses in the UK.its growth model will ultimately turn out to be.”February 2010 CIWM21FInAnCEEazyfone LimitedPrimary Business: Mobile PhonesLFY: 2009CAGR: 172%Turnover: 36 246Web: www.eazyfone.comDESCRIBED BY the authors of this research as “by far the fastest growing waste recycling business”, Eazyfone registered a compound annual growth rate of 172 percent, more than double that of even the second placed Reconomy – a truly outstanding performance and made all the more impressive by the fact that the mobile phone recycling sector was not the best represented in the top 50. In fact, its only representative in the top 50 was Eazyfone!Eazyfone is also one of the youngest companies in the top 50, being formed in the last decade (in 2001), but growing rapidly over the last three years in particular. Unlike many of the companies listed here, whose customers are local authorities and corporate clients, Eazyfone’s customer base is purely private consumers, and Catalyst expects to see even further growth from the business as it exports its business model to Europe and expands its service to other, associated products, such Servicesas MP3 players, digital cameras, laptops and satellite navigation systems in the near future. But what exactly Business does it do?Eazyfone Limited is comprised of five brands: FoneAid, IWM Envirostudents, Fones4Schools, Envirocharities and its most and prominent brand, Envirofone.com. Envirofone is a mobile phone recycling operation that collects and refurbished old organisations, and Envirofone has paid out more than £30m CIWM handsets and either remarkets or recycles them, and is the to its customers to date. As part of its commitment to the of most recognised and high profile of the Eazyfone stable/ environment it has provided funds to help save endangered The Envirofone brand was added to the Eazyfone range rainforests, and under the Envirocharirities brand you in 2005 and remains committed to supporting a greener will find such organisations as Barnados, Age Concern, environment… and this is how.Caudwell Children’s Recycles and Rainforest Concern.permission The company strives to re-use every phone it receives Managing director, nick Brown (pictured atop a pile kind and grades them all accordingly, paying the sender an of mobile phone handsets), has been with the business appropriate fee depending on the model and its quality. since June 2008 and he told CIWM: “Eazyfone – trading with Those that can be used or easily refurbished go into as Envirofone – has enjoyed an exceptional year’s growth. stock for re-sale, while those that cannot be re-used are The hard work and dedication of our team has really paid oduced reprocessed, valuable components recovered and the off, and our strategic business plan is reaping impressive remainder smelted for energy recovery.dividends. We’re thrilled to be listed in CIWM’s Waste Fast ReprThe handsets are recovered from individuals and charity 50 and look forward to continued success in 2010.”Waste Fast 50 Methodology The Catalyst Corporate Finance Waste Fast 50 2010 ranks the fastest growing private waste services businesses in the UK by sales.Criteria for inclusion: the Waste Fast 50 assesses waste services businesses which are registered in the UK as private, independent and unquoted companies. This category includes private companies that are backed by private equity houses. All companies considered for inclusion in the Waste Fast 50 achieved a level of annual sales of £5m or above in at least one of the three financial years assessed.Exclusions: companies which have filed abbreviated accounts at Companies House without disclosing sales levels are excluded. Unaudited management accounts are not accepted due to the absence of any third party validation. Companies that have any shares or other financial instruments listed on a stock exchange, or where any of their shares are held by any UK or overseas quoted company, do not qualify for inclusion. Metal recyclers have been deliberately excluded as this represents a very distinct niche within the recycling industry.Data-collection methods: companies have been identified through several research methods including the analysis of information from Companies House, financial databases, press coverage and other research.Any firm which believes that it may not automatically be included in the 2011 Fast 50 due to the unavailability of public statutory accounts information but which believes it has a verifiable case for inclusion, is invited to contact Robert Pearce of Catalyst Corporate Finance at robertpearce@catalystcf.co.uk22CIWM February 2010Document Outline

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