Endless Metals plans to take over 25% share of NZ market within 5 years

Endless Metals is the fastest growing metal recycling company in New Zealand, successfully scaling through replication of its proven model to 4 sites including 2 major export sites, within 12 months of opening.

The company has a staff complement of 50 and growth plans that envisage a national presence and a 25% share of the New Zealand metal recycling market within 5 years.

The rapid expansion over the short term demonstrates that Endless Metals has the ability to execute on a proven model for scale and replication.

Investment Highlights:

  • Team (Founder & Management) : The founder has 20 years’ experience in the industry as a Director of the largest metal recycling company in sub-Saharan Africa managing the operation of 85 sites. At the helm of Endless Metals is a highly experienced management team with entrenched industry relationships and a financial investment in the company, who have joined forces to disrupt the market.

 

  • Sales Model : Recycled Metals. The Sales strategy is to bypass intermediaries in the distribution chain and sell directly to the mills and foundries eliminating the need for third parties thereby increasing margins. Increased margin gives the company the ability to pay the highest prices in the market when acquiring stock which in turn drives volume, driving further sales.

 

  • Competitive edge: Endless Metals has identified the best markets for containerised ferrous and non-ferrous metals, as well as for bulk ferrous metals, and is well represented with longstanding relationships with large buyers in each of these markets. The strength and geographic reach of these relationships is unrivalled in the local industry. In summary, the economic moat being formed is distancing the competition via completely unique access to metal markets which have been drawn from long-lasting and nurtured industry relationships.  

 

  • Market opportunity: According to Scrap Metal Recycling Association of New Zealand (SMRANZ), scrap exports for 2017 amounted to NZD 425 million and the local scrap industry handled in excess of 740,000 tonnes of recyclable metal. 25% share of the NZ scrap metal market can be captured by Endless Metals within a five-year period. Even though this seems high for a new market entrant, the industry context, approach to market and proven track record lend themselves to swiftly sweeping up the value that is being left on the table. There will be an increase in consolidation and acquisition activities in the recycling and waste industry over the coming year.

 

  • Market size: With their current footprint and revenues based on current depressed market pricing, this would equate to approximately $100,835,000 in revenue and $11,650,130 in EBITDA in FY25.

 

  • Positioning: Endless Metals has intentionally developed a highly recognisable brand and by leveraging brand exposure, the company has gained market traction in ways overlooked by competitors. The incumbent holds 60% of the market share and has remained largely unchallenged primarily due to the lack of appetite by current players to do so and high barriers to entry. 

 

  • Growth: A combination of organic growth and strategic acquisitions which will translate into an increase in market share that is aligned with key milestones.

 

  • Key clients: Endless Metals have secured key industry relationships and have acquired the following customers from the incumbent: major waste management companies (Envirowaste, Green Gorilla, Visy Recycling), all demolition companies in Auckland (Ward, Yakka, Henderson etc), and industrial customers (including Ullrich Aluminium and Eastbridge).

 

  • Exit Strategy: Endless Metals board and shareholders are focused on building a top two market player in New Zealand with the intention of exiting via acquisition by a global recycling company or by an initial public offering (IPO) in years 5 to 7.

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