Recycled tilemaker Alusid raises £1m plus in equity fundraise and eyes market float
Preston-based tile-maker Alusid has raised £1.13 million in an equity fundraising round, including from leading venture capital funder Octopus.
The round values Alusid, started as a spin-out business from the University of Central Lancashire in 2015, at £9.5 million post investment.
Frontier IP, a listed investor in businesses with strong potential from their own intellectual property, now holds a 35.4 per cent equity stake in the Alusid, which makes premium-quality tiles from recycled industrial waste.
Proceeds from the fund raising will be used to support Alusid’s expansion into new product ranges and territories. It is also exploring options for an initial public offering later this year.
Alasdair Bremner, Alusid’s chief executive, said: “This is an important year for Alusid as we launch our first 98.5% recycled, low carbon floor tile, expand our geographical reach and seek to become a public company.”
The company is developing hard-wearing floor tiles, which are expected to launch commercially this year, and is in discussions with potential distributors in Scandinavia and Northern Europe.
In a statement to the stock market this morning from Frontier IP, the investor said Octopus’s investment “caps a successful year” for Alusid.
It also revealed that Topps Tiles, the UK’s leading tile retailer, launched its first range of Alusid-made tiles, called Principle, made from a minimum of 91.3 per cent recycled material, a level among the highest in the industry. Further product launches through Topps are expected. Alusid has also developed a successful relationship with Starbucks EMEA and its tiles can now be found in coffee shops across Europe and the Middle East.
Other customers include H&M, Pret a Manger, the BBC and the Stonehenge Visitor Centre. The Company has also collaborated with Imerys, a world leader in specialty minerals, to develop the floor tiles, which comprise some 60 per cent of the total tile market in the UK.
Dominic Weller, Fund Manager Octopus Investments, said: “We are excited to support entrepreneur Dr Alasdair Bremer and the team in scaling Alusid to establish sustainable tiles from recycled waste as the industry standard. We have been impressed with the progress the team has made and are looking forward to working together.”
Frontier IP Chief Executive Neil Crabb said: “The investment from Octopus represents important validation for Alusid, its capital-efficient business model and the quality of its products, made from a minimum of 91 per cent recycled material, among the highest levels in the industry, if not the highest. The Company is a leader in the industry globally and is set for a very bright future.”
Launched in 2015, Alusid is the result of a research project at the University of Central Lancashire which set out to explore how waste and low-value materials destined for landfill could be repurposed into beautiful, versatile surface materials.
Professor David Binns and Dr Alasdair Bremner developed Silicastone – an innovative and aesthetically versatile architectural surface material made from glass, ceramics and mineral waste.
