The seven-year contract will begin in the Leicestershire borough in April 2003. It marks the first contract win since Verdant's official launch this week.
 Simon Miles (left), Verdant managing director with brother Jonathan, Verdant's executive chairman |
Verdant was formed by Simon and Jonathan Miles after they sold their original waste business, Polkacrest, to LondonWaste in 1998. The brothers purchased Ecovert, the environmental services division of SAUR UK in 2001, but had continued to use the name Ecovert under license from SAUR (see letsrecycle.com story).
In 2002, Verdant had a turnover of about 13 million. The company has a workforce of 270 and a fleet of about 200 vehicles operating out of 10 depots. The Group has now dropped its use of the Ecovert trading name and according to Simon Miles, the Verdant MD, intends to win further contracts similar to the Melton deal.
Mr Miles said: “The municipal services sector is dominated by either direct services organisations, who control approximately 65% of the market, or by large companies. Our opportunity is to win selected contracts from the competition, attract some business away from the DSO's and develop market share.”
Verdant would do this, Mr Miles explained, by offering “greater transparency and accessibility” as well as by “being more flexible and adaptable”. The MD, who has a background as a chartered accountant, said that Verdant's small infrastructure would work in its favour, making it more competitive in tenders.
But the size of the company is likely to grow, Mr Miles said, much in the same way that the brothers saw Polkacrest grow in the two years prior to its sale.
“It is our intention to make the business one of the largest privately owned companies in the sector,” he said. “In order to achieve this we will need to increase our range of activities within the sector in which we operate.”
Recycling
Although no details of proposed recycling activities have been announced concerning the Melton contract, a Verdant spokeswoman told letsrecycle.com that recycling facilities for the borough's 48,600 residents would improve.
Commenting on Verdant's policy on recycling, Mr Miles said: “We believe the best way forward for domestic refuse collection is by 'segregation at source'. This is why Verdant recommends kerbside collection programmes where refuse is collected in separate boxes already segregated.”
With the Melton contract, Verdant will be looking to improve on recycling rates that are already some of the highest in the country.
 Verdant is launching its new look this week |
The Audit Commission report on Melton borough council, published in October 2001, rated the council “good”, with a two star service. Inspectors said the council's waste collection service was “comprehensive and reliable” and that its recycling performance was one of the highest in the country.
The Council provided a weekly collection from all households of dry recyclable materials, including paper, textiles, cans and foil, glass and plastic bottles. Plastic sacks (green for paper and grey for all other recyclables) are provided free to each household.
Melton recycled 24% of its municipal waste in 2001 and was one of only 18 councils out of 348 in England to have been set the highest statutory targets of 33% in 2003-04 and 40% in 2005-06.
Verdant also holds contracts with Isle of Anglesey county council, Uttlesford district council, Caerphilly county borough council, Warwick district council, Surrey Heath council and Gosport council.
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