LEF invests in recycling pioneer ECO Plastics

Ludgate Environmental Fund Limited

Ludgate Environmental Fund invests further in recycling pioneer ECO Plastics

Ludgate Environmental Fund Limited ("LEF") is pleased to announce its participation in a funding round into ECO Plastics to finance continued expansion over the coming year. ECO Plastics is raising a total of £6 million from existing shareholders, including SAM Private Equity and LEF, which will be dedicated to short-term added-value expansion opportunities. ECO Plastics' existing debt provider, Close Brothers, has also committed additional working capital facilities to support growing sales revenues.

Capable of processing 150,000 tonnes of mixed plastics a year, including some 40,000 tonnes of bottle-grade rPET pellet, the ECO Plastics site is already the largest and most technologically advanced of its kind in the world.

The funding round is the second that ECO Plastics has embarked upon within the last 18 months, following a successful £24 million raise in July 2011. Those monies were used to finance ECO Plastics' Continuum joint venture with Coca-Cola Enterprises, a landmark agreement which more than doubled the UK's rPET production. In February, the company also announced a £1.5 million loan from WRAP to expand its rigid plastic sorting facilities. To date, LEF has invested approximately £5.9 million into ECO Plastics.

Commenting on the announcement, Jonathan Short, Managing Director of ECO Plastics said: "ECO Plastics is now ready to tackle another period of rapid growth. We have made huge progress over the last three years and this investment leaves us ideally positioned to continue to develop our state-of-the-art facilities and to take advantage of any other expansion opportunities that arise."

"The fact that we have been able to raise this money in what remain financially straitened times, is a testimony to our shareholders' on-going confidence in the company and the management team's strategy. We look forward to continuing to grow the business with them."

Bill Weil, Chief Investment Officer of the Ludgate Environmental Fund said: "Ludgate Environmental Fund continues to support the impressive growth of ECO Plastics. The business meets key investment criteria for Ludgate: a proven technology with defensible, differentiable intellectual property, operating in a significant market with substantial growth potential and led by a management team that combines technical expertise with a track record of delivery."

About ECO Plastics:

ECO Plastics is Europe's leading plastic bottle recycler. The business began re-processing post-consumer plastics in 2006 and has over the past five years invested over £17m to quadruple its processing capacity and triple the factory footprint. During early 2009 it became the first UK company to receive food grade accreditation for its rPET resin.

The completion of the business' £15m joint venture with Coca-Cola Enterprises has seen Hemswell become the world's largest and most sophisticated plastics recycling facility, capable of processing 150,000 tonnes of mixed plastics a year, including 40,000 tonnes of bottle-grade rPET pellet.

ECO Plastics' superior cleaning technology allows the company to make the most use of the plastic it sorts, producing 11 different streams of plastic, including food-grade PET. Virtually no waste is left over. Independent research has shown that ECO Plastics' process is 68% less carbon intensive than using virgin plastics for packaging.

For more information www.ecoplasticsltd.com

About Ludgate Environmental Fund Limited:

Ludgate Environmental Fund invests in a diverse portfolio of late stage emerging companies in the European cleantech sector. Actively managing its holdings, Ludgate Environmental Fund invests growth capital. Investments are focused on: waste management and recycling; renewable energy; energy efficiency; and water. 

Ludgate Environmental Fund was launched in August 2007 and has assets under management of £44.3 million as at 30 September 2012. Ludgate Environmental Fund is a Jersey domiciled closed-ended investment company, quoted on AIM under the symbols LEF.L for the shares and LEFW.L for the warrants.

For more information www.ludgateenvironmental.com

About WRAP

WRAP's vision is a world without waste, where resources are used sustainably. It works in partnership to help businesses, individuals and communities improve resource efficiency. Established as a not-for-profit company in 2000, WRAP is backed by government funding from England, Northern Ireland, Scotland, and Wales.

ECO Plastics secured £650,000 from WRAP's mixed plastics loan fund, and £500,000 from WRAP's accelerating growth fund, which is aimed at speeding up the growth of viable businesses Information on these loan funds is available here: www.wrap.org.uk/funding

For further information contact:

Ludgate Environmental Fund Limited +44 (0) 1534 609034

John Shakeshaft, Chairman

Ludgate Investments Limited (Advisor) +44 (0) 20 7621 5770

Bill Weil, Chief Investment Officer

PricewaterhouseCoopers LLP (Nomad) +44 (0) 20 7212 1798

Chris Clarke

Panmure Gordon (Broker) +44 (0) 20 7866 2713

Paul Fincham