Member Article

Six figure investment supports MBO at Durham-based CVO Fire

Newton Aycliffe-based CVO Fire has secured a six-figure investment from UK Steel Enterprise to support a management buyout.

Now headed by Directors Paul Stocks and Michelle Bailey, the fireplace company says it is now embarking on plans to grow its customer base, workforce and showroom network.

The business’ burner developed and patented technology, which is hand-built in County Durham, allows customers to have a gas fire without needing a chimney or a catalytic convertor.

The UK Steel Enterprise investment came from the Tata Steel business support-subsidiary’s Equity Growth Scheme, backed by the government’s Regional Growth Fund.

Paul Stocks said: “Our buy-out and expansion plans would have been very difficult to achieve without this investment and backing from UK Steel Enterprise. We looked at a number of funding sources but UKSE was the best option for us.

“We are already creating at least two additional sales posts early in the New Year and expect additional production and other jobs to follow.

“We have a really committed production team here and they are currently working flat-out to complete pre-Christmas orders. Our order book is also looking very healthy well into 2017.”

Michelle Bailey added: “We are planning to develop our network of UK dealers and our European market and open two more of our own FireVault showrooms in London and the Midlands.”

Sarah Thorpe of investor UK Steel Enterprise commented: “We were introduced to the company by Sam Condren of accountants Barkley Jonson and have also been working alongside the company’s other advisers Angus Allan at Clive Owen & Co and Nik Tunley of Endeavour Partnership.

“It has been another example of successful teamwork that has resulted in a business with real potential getting the support and investment it needs to exploit its opportunities and create valuable jobs.”

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