Organic waste processing firm Bioganix has announced its intention to float - thought to be the first Leominster firm to seek a listing on AIM.

The Herefordshire company, which can trace its roots to a farmers' collective, intends to raise #2 million to fund a roll-out of its waste factories across Britain.

It is currently finishing a location in Suffolk in addition to its first organic processing plant it set up in Leominster in 2001. It has also been awarded funding by DEFRA to under-take further research and development.

Bioganix, which employs ten people, processes food waste and other organic byproducts into high quality fertiliser by placing it in rolling tanks.

This speeds up the composting process from a period of several weeks to 100 hours.

The plant in Leominster currently processes 50,000 tons a year, but has been facing even greater demand from local authorities and food producers.

Managing director Nick Helme said: "We have got a company that has been spending the last three or four years developing a process for recycling organic waste and food waste materials up to a stage where it is functioning really well.

"We have built the Suffolk site from our own resources, but we think the opportunities for new factories made us think the best way forward is to raise money with a placing.

"These are high tech factories, which cost #3-4 million each. We are looking to expand in the market, this is not an exit for the existing shareholders.

"We want to raise funding to do more of the same."

The company is expected to have a market capitalisation on flotation of approximately #7 million and said it plans to construct, own and operate its own sites.

Mr Helme was confident there would be a big demand for the services of his company.

He said: "The amount of rubbish we throw away every day is huge. This year the Government has a target to reduce the amount of biodegradable material going into landfills by three million tons a year. That is a rolling target for the next ten years. There are all sorts of problems with landfill, creating methane gas for example.

"With our factories processing 50,000 tones a year, that means there is ultimately scope for 60 new sites every year. The potential is massive."