Recycler posted 35 per cent revenue growth in 2011 and expects further growth to come
Recycler Redeem expects to rack up revenues of more than £150 million in the next five years as a result of organic growth and acquisitions, the first of which is likely to come in the next 12 months.
Redeem chairman and part-owner Trevor Bayley said excluding the impact of any future acquisitions, overall growth in the recycling market, new UK contract wins and global expansion will see revenues at Redeem hit £150 million in four to five years.
In the last financial year to March 31, Redeem grew revenues by 35 per cent to £30 million excluding the impact of the acquisition of EMC last year.
Bayley said: “We want to go to £150 million over four or five years, and that is just organic, we will look at acquisitions as well. The UK market is still growing rapidly, we are looking at 40 per cent growth this year, mostly from the UK.
“But we are now starting to source some handsets from Europe through EMC, and of that £150 million, it will be about 50-50 UK and Europe.”
Bayley said revenues at Redeem will exceed the £150 million generated organically as the firm acquires other recycling operations in the UK and Europe to add to the purchase of Staffordshire-based EMC.
He said that the next one or two acquisitions Redeem makes will be funded by existing backers, including Bayley himself, but the firm may seek institutional investors to fund further purchases.
Bayley said: “There are a number of interesting candidates in the UK and continental Europe which we are looking at at the moment.
“I would be surprised if we don’t make a significant acquisition within the next 12 months.”