Environmental Waste Controls (EWC) has decided against plans to float on the stock market after potential investors would not match the company’s price.
But it is continuing with the £4m expansion plans to the business, which include building three new MRFs and introducing new revenue streams.
A statement from EWC said: “The company received significant interest from investors, but did not believe it could raise the right level of investment from a sale and is no longer planning to list.
“The board remains committed to its business plan and believes the same results will be delivered although over a different timescale.”
EWC has already secured a site for a MRF in East Kilbride, Scotland, and is doubling the size of its existing MRF in Knowsley, while it plans to build another in south London this year. It is also moving into the recycling of waste electrical and electronic equipment with the opening of approved authorised treatment facilities in Merseyside and Leicestershire. There are also moves to open a EWC site in Lyon, France, to help it enter the European market.
Group chief executive Bill Shaw said: “We entered this process confident that an AIM listing could be achieved but soon realised that even companies with strong balance sheets are not achieving the right valuation.
“EWC is highly cash generative and will use its strong trading position to seek alternative routes to funding and expansion.”