A North West-based spin-out which makes premium-quality tiles and architectural surfaces by recycling industrial waste ceramics has completed a funding round which values the business at £10m as it prepares for a potential IPO on AIM.
ALUSID was founded by David Binns and Alasdair Bremner with the vision to turn low value unwanted materials into beautiful products that architects and designers desired.
The Preston-based company’s sustainable tile ranges are distributed in the UK by Topps Tiles and Parkside Architectural Tiles. Customers also include Amazon, Nando’s, Pret A Manger, Selfridges, Harrods and the BBC.
The business, a spin-out from the University of Lancashire, has raised £500,000 through a pre-IPO equity funding round.
The fundraising values the company at £10m and investors included existing backer, Octopus Investments, through its Octopus AIM VCT plc and Octopus AIM VCT 2 plc funds, and the University of Lancashire.
As part of the round, Frontier IP converted loans of £250,000 into equity and now holds a 36.16 per cent per cent equity stake in the company.
Proceeds from the round will support Alusid as it prepares for a potential IPO on AIM. They will also be used to accelerate development of further product ranges, expansion of its international distribution network and continued development of Alusid’s proprietary low carbon tile manufacturing technology.
Alusid is also developing new product categories to broaden target markets and further strengthen its proposition ahead of an IPO.
It is innovating to branch into moulded surface products, including shower trays, basins and architectural components using a novel mineral and alkali geopolymer based binder system designed to be made from UK waste streams.
Dominic Weller, fund manager at Octopus Investments, said: “We are proud to continue to support Dr Alasdair Bremer and the Alusid team as they build on their progress to date. Their mission to make sustainable tiles from recycled waste the industry standard remains compelling, and we look forward to supporting their next phase of growth.”
Alasdair Bremner, Alusid’s CEO, added: “Closing this round marks another important step towards bringing Alusid to the public markets. We are seeing strong and growing demand from retailers and distributors across Europe for genuinely low-carbon tile ranges, and this investment will allow us to accelerate new product development and scale our distribution network with confidence.
“Our ambition is to demonstrate that sustainability and commercial performance can go hand in hand, and we are now well-positioned for the next stage of growth.”
Frontier IP chief executive Neil Crabb said: “Alusid continues to go from strength to strength as the strong support from investors for this funding round shows. The Company is powering ahead internationally and in developing new branches of products as it continues to explore options for an IPO.”
University of Lancashire Deputy Vice-Chancellor Ruth Connor said: “We’re delighted that the University’s first spin-out company has seen considerable success in its first ten years and with this latest investment round we look forward to seeing the next stage of its growth.”
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