London-based Hydrodec UK has rebranded itself as Slicker Recycling Ltd., the company announced.
In March, the Hydrodec Group, which is headquartered in Leatherhead, Surrey, UK, and is listed in the Alternative Investment Market (AIM) of the London Stock Exchange, sold Hydrodec UK for GBP1 (USD1.23) to Andrew Black, who is a non-executive director of Hydrodec Group and a substantial shareholder of the company. The sale included the transfer of around GBP1.2 million (USD1.48 million) of existing third-party indebtedness. The estimated net assets of Hydrodec UK’s operations were around GBP4.7 million (USD5.8 million) as of 31 December 2015.
“Andrew Black has a reputation for making things happen. His involvement and his interest in environmental matters, especially recycling, have already been of considerable benefit to us. We are re-branding to help re-enforce our new identity and our new approach to business,” said Mark Olpin, managing director of Slicker Recycling.
Black, who is the founder of the online betting service Betfair, said he intends to pursue plans to build the UK’s first base oil re-refinery.
“Currently we will continue to recycle the waste oil we collect into a processed fuel oil but we believe that our plans for a base oil re-refinery will provide the best solution for long-term waste oil recycling,” Olpin said.
The divestment of its UK used oil collections business, which generated estimated EBITDA losses of around GBP3 million (USD3.7 million) in 2015, would allow the Hydrodec Group to concentrate on its transformer oil technology and business moving forward. The global transformer oil market, which is less correlated to global crude oil prices, is worth about USD2 billion. Hydrodec believes it has a competitive advantage in the transformer oil market with its “proven and market-leading technology.” Specifically, the company said it intends to strengthen Hydrodec’s footprint in the United States.
Should plans to build a UK base oil re-refinery push through, the Hydrodec Group will be entitled to receive 10% of net profits from the project, although Black will bear all the risks and responsibility for developing it. The transfer of the UK licence and basic engineering package from CEP is subject to the consent of CEP.