Pictured above: Jon Myerscough from Lloyds TSB Commercial
Finance and Paul Woodhead from PPF
A Birmingham-based plastic recycling firm is set to boost
turnover to £1.2 million after securing a £200,000
invoice discounting facility from Lloyds TSB Commercial
Finance.
PPF Environmental Services cleans, processes and granulates
materials which are not normally recycled, such as used plastic,
upholstery from cars and baby wipes.
The granulated plastic is then sold on to wholesalers which sell
the materials to manufacturers which then re-use the products to
make new packaging.
Established in 2009, the business initially began life as a
recycling consultancy firm, before becoming a processing company in
October 2010.
In order to support the business' rapid growth, management
approached Lloyds TSB Commercial Finance for a cash flow
solution.
The funder provided PPF Environmental with a £200,000
invoice discounting facility. Based on the firm's issued invoices,
it enables the company to grow in-line with sales and provides the
financial headroom to invest in growth.
Now PPF is on track to take turnover from £100,000 to
£1.2 million this year, with plans to supply directly to
their end customer, plastic injection firms. To capitalise on the
increased demand for the company's service it has also taken on
five new members of staff.
Paul Woodhead, Managing Director of PPF Environmental Services,
said: "A plastic container can take hundreds of years to decompose
in a landfill site, so it is of the upmost importance that people
look at what they are throwing away and assess if it can be
recycled.
"A lot of the materials we deal with would have been resigned to
a tip a couple of years ago. But, as a result of the growing
public's awareness, improvements in technology and sustainability
moving up the agenda, we are seeing an increase in demand for our
services.
"In the current economic climate we were finding it difficult to
secure traditional funding to support our growth ambitions. The
invoice discounting facility has been ideal as it advances our
issued bills, giving us the liquidity to concentrate on expansion
and as a result, we are on track to boost turnover by more than
tenfold this year."
Jon Myerscough, Associate Director, Business Development, Lloyds
TSB Commercial Finance, said: "Paul and the team at PPF are making
waves in a growing market. Increasingly, councils and businesses
are recognising the need to recycle plastics.
"We worked closely with the firm to put in place a facility
which will support PPF Environmental's rapid expansion, freeing up
their cash flow to invest in growth and new members of staff,
whilst still having steady liquidity to cover overheads.
"The recycling sector is vital to all areas of business and PPF
is a great example of a growing company thoroughly capitalising on
the current market."