Waste Management

Financial Performance

On the numbers provided, SIA Ramotti shows a brokerage operation building commercial scale from EUR 656,329 (2023) to EUR 1,001,592 (2025), driven by an expanding Baltic sourcing network and a deliberate shift towards higher-value PCB-rich and copper-bearing fractions. The 2024 revenue dip (−20.9%) was a volume-for-quality trade — gross margin improved from 8.1% to 13.7% in the same year — followed by a sharp 2025 recovery (+93.0%) that confirmed the underlying commercial trajectory. The 2026–2027 forecast introduces the structural transition: the brokerage channel continues at approximately EUR 948,000 (2026) and EUR 684,000 (2027) while the new in-house sorting operation enters the income statement with EUR 1,200,000 (2026F) and EUR 2,736,000 (2027F), bringing combined revenue to EUR 2,148,000 (2026F) and EUR 3,420,000 (2027F). Profitability is positive throughout the historical period, with a material step-up in 2025 (EUR 93,949 net profit, 9.4% margin) as the brokerage model reaches commercial maturity, and a further improvement forecast for 2026–2027 as the higher-margin sorting line contributes to the blended mix.

Revenue growth by year is: −20.9% (2024), +93.0% (2025), +114.5% (2026F), +59.2% (2027F).

Income statement highlights in EUR (2023–2027)

Growth and margin indicators

Revenue and gross margin trends

Revenue growth over 2023–2025 follows a non-linear trajectory characteristic of early-stage brokerage operations building a supply base. The 2024 contraction (−20.9% to EUR 519,066) reflects supply stream variability and a deliberate shift towards higher-quality, higher-margin procurement, not structural demand deterioration; the sharp rebound in 2025 (+93.0% to EUR 1,001,592) confirms this. The 2026–2027 forecast assumes the brokerage channel continues at approximately its current run-rate (declining modestly as highest-value fractions are redirected to own sorting), with the sorting line adding EUR 1.2–2.7m from a buyer pipeline backed by 3 executed contracts and 5 formalised letters of intent.

Gross margins show steady improvement from 8.1% (2023) to 13.7% (2024) to 17.8% (2025), reflecting progressive procurement optimisation and a shift in output mix towards PCB-rich and copper-bearing fractions where per-tonne spreads are widest. The 2026–2027 forecast projects a further step-change to 28.0% and 32.0% as the sorting operation contributes higher-margin revenue (32–35% gross margin on own sorting) to the blended mix. The margin improvement is structural — driven by the elimination of third-party processing fees that currently compress brokerage margins to 14–18% — rather than by aggressive pricing assumptions on either channel.

Cost structure and operating expenses

OPEX behaviour reflects a lean, owner-managed brokerage operation gradually building operational capacity. Over 2023–2025, operating expenses rose from EUR 10,209 (1.6% of revenue) to EUR 51,032 (5.1%), incorporating the cost of the dedicated engineer recruited in 2025 to prepare the sorting line transition. The 2026–2027 forecast projects a material step-up to EUR 168–252K, representing 7.8–7.4% of revenue — reflecting the costs of operating a licenced sorting facility (facility rent, sorting team of 4–6 operators, environmental compliance, insurance, equipment depreciation). The declining OPEX-to-revenue ratio from 2026 to 2027 demonstrates operating leverage as the largely fixed-cost facility overhead is spread across a growing revenue base.

A structural note: the line item “Other expenses” in 2024 (EUR 43,435) and 2025 (EUR 33,462) represents capital expenditure on preparatory equipment for the planned sorting facility, recorded as current-period expenses in the management accounts rather than capitalised. This treatment compressed reported net profit in both years — profit before tax of EUR 46,664 (2024) and EUR 127,411 (2025) more accurately reflects the brokerage model’s underlying profitability before one-time investment outlays.

Below-EBIT charges and net profit dynamics

Net profit follows a clear two-phase pattern. Over 2023–2025, bottom-line profitability was positive but compressed: EUR 43,101 (2023), EUR 3,229 (2024, after EUR 43,435 in equipment purchases), and EUR 93,949 (2025, after EUR 33,462 in equipment purchases). The thin 2024 result reflects the deliberate investment of operating surplus into preparatory equipment, not commercial deterioration — profit before tax actually improved from EUR 43,101 to EUR 46,664. The 2025 breakout (EUR 93,949, 9.4% net margin) confirms the operating leverage once the brokerage model reaches scale. The 2026–2027 forecast projects further expansion to EUR 343,238 (16.0%) and EUR 807,900 (23.6%), driven by the sorting operation’s contribution to the blended margin. Two items in the below-EBIT line require attention:

Interest expense steps up from zero historical levels to EUR 90,563 in 2026F, reflecting the proposed EUR 575,000 facility at 21.0% per annum over 9 months. This is consistent with the loan terms described in this memorandum. The interest load is comfortably covered: combined EBIT covers interest by 5.8×. The brokerage business alone provides baseline interest coverage of 1.4× (2025 PBT of EUR 127,411 vs annual interest of EUR 90,563), ensuring that interest can be serviced even if sorting ramp-up is delayed; comfortable debt service including principal repayment requires the sorting operation to perform broadly in line with projections.

Interest then falls to EUR 34,500 in 2027F as partial principal repayment from 2026 operating cash flow reduces the outstanding balance. Coverage rises to 25.4×. This pattern is consistent with the six-tranche disbursement and bullet repayment schedule described in the loan terms and assumes partial repayment from operating cash flow rather than refinancing.

Growth Plan of SIA Ramotti

SIA Ramotti has operated in the Baltic e-waste market since 2019, building a sourcing network across Latvia, Lithuania and Estonia and establishing commercial relationships with downstream recycling processors and metallurgical facilities across the EU. The 2025 financial results — revenue of EUR 1,001,592, gross margin of 17.8%, profit before tax of EUR 127,411 — confirm that the brokerage model works and that the company has reached a scale where the next stage of development is operationally grounded. The growth plan is not a pivot into unfamiliar territory; it is a vertical integration within the same value chain, the same supplier relationships and the same buyer channels in which the company has operated since inception — taking direct control of the sorting step that it currently outsources to third-party processing partners.

The rationale for the 2026–2027 transition is structurally driven. Under the current brokerage model, SIA Ramotti captures a commercial intermediation spread of approximately 14–18% gross margin; a material portion of the sorting spread — approximately EUR 350–500 per tonne in processing fees — is transferred to third-party partners. When sorting is performed in-house, this fee is eliminated and replaced by directly controllable operational costs of approximately EUR 200–280 per tonne, expanding per-tonne gross margins from approximately EUR 150–300 (brokerage) to EUR 520–820 (own sorting). At the current resource base, the company cannot execute this transition: the sorting facility requires EUR 575,000 in equipment, quality control infrastructure, licensing and working capital that exceeds accumulated cash reserves. The brokerage business continues to operate in parallel throughout the transition and beyond, providing a self-sustaining revenue base that independently covers interest obligations.

Management therefore frames 2026–2027 as a controlled transition from collector–broker–trader to collector–sorter–trader — funded by an equipment-first investment programme that removes the capacity constraint — combined with the continued operation of the brokerage channel on lower-value fractions. The demand-side foundation is documented: a buyer pipeline of EUR 1,110,000–1,310,000 in annualised off-take potential across 8 named counterparties in 5 countries, comprising 3 executed contracts (EUR 730,000–810,000) and 5 formalised letters of intent (EUR 380,000–500,000). The plan reflects a measured, pipeline-backed vertical integration rather than a speculative market bet.

Core growth initiatives and implementation sequence

SIA Ramotti’s growth plan is built around a single operational transition: establishing a licenced sorting facility in the Riga area and commencing in-house sorting of high-value e-waste fractions from Q2 2026. The transition requires the company to build four capabilities it does not currently possess: a licenced facility (premises identified, lease contingent on financing), processing equipment (EUR 445,000 in sorting, separation and material handling machinery), a sorting workforce (4–6 trained operators to be recruited upon commissioning), and direct quality control infrastructure (XRF analyser, weighbridge, scales, lot-tracking systems). The company’s engineer — already on staff since 2025 — is responsible for sorting line design, equipment specification and operational preparation; the Category B environmental permit application is in preparation, with standard processing timelines of 3–6 months.

The sorting facility is designed for an initial annual capacity of approximately 300–400 tonnes of e-waste input, calibrated against the company’s existing supply base. The fraction routing strategy directs the highest-value material (PCBs, connector assemblies, copper windings) to the company’s own sorting line, where per-tonne margins are widest, while lower-value fractions (ferrous scrap, aluminium, residual waste) continue through the brokerage channel to third-party partners. The ramp-up trajectory follows the commissioning timeline: 30–50 tonnes in Q2 2026 (commissioning), 60–90 tonnes in Q3, 70–100 tonnes in Q4, reaching full-year throughput of 300–400 tonnes in 2027. Projected sorting revenue is EUR 1,200,000 in 2026 (partial year) and EUR 2,736,000 in 2027 (full year), with blended gross margins of 28.0% and 32.0% respectively.

The buyer pipeline validates the demand-side case. Three executed contracts — NOVITERA UAB (precious-metals recovery, ~EUR 360,000/year), Metruna UAB (secondary materials trading, EUR 120,000–150,000/year), and Boliden Group / Rönnskär (industrial smelter, EUR 250,000–300,000/year) — provide a contracted base of EUR 730,000–810,000. Five additional LOIs with Baltic Recycling UAB, ALL Recycling SIA, Kat-Metal Oy (Finland), Holland Recycling B.V. (Netherlands) and an incremental NOVITERA expansion add EUR 380,000–500,000, with conversion mechanisms tied to operational readiness by 1 July 2026. All purchase commitments are quality-conditional, consistent with standard practice in the secondary raw materials market.

Financing request and use of proceeds

SIA Ramotti is seeking a EUR 575,000 loan facility to finance the sorting and separation equipment, quality control infrastructure, environmental licensing and initial working capital required to transition from brokerage to in-house sorting. The investment is equipment-intensive by nature: approximately 92% of the facility (EUR 530,000) is directed to tangible, identifiable physical assets with specific models, quantities and market-verifiable pricing. The company’s own operating cash flow covers personnel costs, facility rent and ongoing operational expenses — the loan proceeds are concentrated on capital assets that create lasting productive capacity and serve as a tangible collateral base.

All equipment specifications are independently verifiable against European industrial equipment catalogues. Pricing has been confirmed within standard commercial ranges. The equipment-first allocation ensures that the bulk of the facility creates tangible, pledgeable assets with defined secondary-market recovery values.

Buyer pipeline — 2026

Conclusion

SIA Ramotti’s 2026–2027 growth plan is best described as a vertical integration step within a business that has operated in the Baltic e-waste value chain since 2019 and has demonstrated commercial viability through seven years of brokerage activity. The company is not changing its market focus, sourcing logic or buyer base. It is internalising the sorting step that it currently outsources to third-party processing partners — capturing the processing spread (approximately EUR 350–500 per tonne) that is currently transferred, and replacing it with directly controllable operational costs that are structurally lower than the margin ceded.

The plan is commercially grounded in an identified, pipeline-backed demand base and is operationally specific. It translates buyer commitments into a single, measurable execution path: build the sorting facility, obtain the Category B permit, install the equipment, recruit and train the sorting team, and begin producing specification-grade output lots for the 8 contracted and LOI-backed buyers across 5 countries. The pipeline is quantified (EUR 1,110,000–1,310,000 across 8 counterparties, 5 countries, 5 buyer types), and each engagement includes a defined material scope, quality-conditional purchase parameters and an identified capacity blocker that the loan facility addresses. The contracted base alone (EUR 730,000–810,000 from NOVITERA, Metruna and Boliden) provides a structural demand floor.

The financing request follows the same disciplined logic. The EUR 575,000 facility is ring-fenced to the four categories that matter for this transition: sorting equipment (77.4%), quality control infrastructure (14.8%), licensing (2.6%) and working capital (5.2%). Approximately 92% is directed to tangible, verifiable assets. The key execution conditions are clear: commission the sorting facility on schedule (Q2 2026), obtain the Category B permit, and demonstrate to buyers that the company can produce specification-grade lots at the quality level required for premium pricing. The principal risks — commissioning timeline dependency, absence of demonstrated sorting performance, LOI conversion contingency, key-person concentration and commodity price exposure — are characteristic of a micro-enterprise undertaking its first vertical integration step and are partially mitigated by the company’s zero-debt starting position, the continued cash generation of the brokerage business, and the structural nature of the margin improvement.

Description of the Loan

To execute the planned transition from e-waste brokerage to in-house sorting operations and remove the current equipment and facility constraint, SIA Ramotti intends to obtain a EUR 575,000 term loan facility. The facility is designed as a targeted equipment procurement and facility build-out instrument: it finances the sorting and separation machinery, quality control and analytical infrastructure, environmental licensing, and working capital needed to establish and commission the sorting facility. The draw structure mirrors the operational sequence of the investment programme, so funding is available when each category of spending becomes operationally necessary and is not held idle. The loan is not intended to refinance historical obligations, fund general corporate overhead, or support the brokerage business, which is self-sustaining from its own cash flow.

Indicative facility terms

Tranche schedule and allocation

The facility is structured to match how the sorting facility build-out is actually executed. The six tranches correspond to the operational sequence: core sorting machinery first (Tranche 1), mechanical separation completion (Tranche 2), manual disassembly and storage infrastructure (Tranche 3), material handling and facility systems (Tranche 4), quality control and analytical suite (Tranche 5), and licensing, spare parts and working capital last (Tranche 6). This design links each draw to a defined project step — ordering, delivering, installing, commissioning, and launching — so the funding is used directly for the sorting facility build-out and its practical activation, without mixing purposes or leaving material amounts undrawn or idle. Interest accrues only on disbursed amounts, reducing the effective cost during the ramp-up phase, and each drawdown is supported by documentary evidence (supplier invoices, proformas, purchase orders, delivery confirmations, permit documentation) linking the disbursement to a specific procurement or investment activity.