Kidderminster firm could create 70 jobs (From Kidderminster Shuttle)

Kidderminster firm could create 70 jobs

2:10pm Tuesday 27th April 2010 in News

A RECYCLING business based in Kidderminster could create up to 70 new jobs by the summer thanks to a £1 million cash boost.

Lawrence Recycling and Waste Management is also on course to reach its £15 million turnover target.

The firm’s Stourport Road plant is Europe’s largest material recycling facility and is benefiting from a £1million asset based lending facility (ABL) from Lloyds TSB Commercial Finance.

The company’s recycling plant, known as The Forge, recycles 250,000 tonnes of building and commercial waste a year, cleaning and sorting materials such as metal, plastic, sand and stone, to prevent them having to be sent to landfill.

The Forge’s 16-acre site is large enough to process 250,000 tonnes of waste. To develop the site to its full capacity and help the enlarged group reach its turnover target, Lawrence approached Lloyds TSB Commercial Finance for a tailored £1 million ABL facility.

The funding package allows the group to expand by releasing the value of the combined business’s three sales ledgers.

The latest investment, needed to complete the refurbishment of The Forge, which has been fully operational for almost eight months, is expected to create the 70 new jobs.

Calvin Williams, Lawrence’s financial director, said: “When you’re a company with ambitious growth targets, it’s important to have the right funding in place to support your expansion strategy.

"We have a significant opportunity to develop our business further and aim to recycle 99 per cent of the commercial and industrial waste that is currently brought to the site, ensuring it doesn’t have to be sent to landfill.

“Last year, we received a £10 million capital injection and, in addition to this, we wanted to make the most of the significant volume of debtors.

“The ABL facility from Lloyds TSB Commercial Finance effectively unlocks the balance sheet, releasing working capital at a rate to suit our growth and putting us in a strong position for the future.”

Jon Myerscough, associate director business development at Lloyds TSB Commercial Finance, said: “The market that Lawrence Recycling and Waste Management operates in is growing at a fast rate in line with landfill tax, which is currently increasing by £8 per tonne per year, recently rising to £48 a tonne.

“Companies also have a legal obligation to pre-treat waste before it goes to landfill, which provides an added incentive for firms to recycle and reuse materials, along with the reputational issues and importance of being eco friendly.

“These factors are all contributing to the success of Lawrence Recycling and Waste Management and we look forward to continuing our work with this fast growing firm as it expands further.”