Waste management firm Environmental Waste Controls (EWC) has announced its intention to seek admission to float on the stock exchange and become an AIM-listed company.
EWC’s directors hope to raise £4m through its stock market placing. The net proceeds of the placing will be used to fund ‘organic growth’ in its business operations by increasing MRF sites and introducing new revenue streams. It hopes this will strength the group’s balance sheet, in turn, enhancing its ability to pre-qualify for large project tenders.
Chief executive Bill Shaw said: “EWC is a profitable, cash generative, asset backed company with significant opportunities for growth in a very fragmented market. Our intention is to use the AIM listing and placing as a driver for future growth, as it will significantly enhance the Company’s profile, which will be of assistance when tendering for new contracts, particularly in the HWRC division.
“We also intend, (subject to finding suitable locations), to add an additional three MRFs to the three that are already operational across the UK. We have experienced increased revenues through commodity sales as a result of our existing MRF in Liverpool and rising commodity prices. We have already acquired a site in Scotland and are actively looking for others.”
Daniel Stewart &Company is acting as nominated adviser and broker to EWC.
Based in Liverpool, the firm had a £24m turnover for the year ended August 2010 and gross profit of £6.1m.