Teesside engineering firm targets growth with £300k investment package
A Teesside-based engineering company is looking to boost business growth after securing an investment package of £300k.
Covol Engineering has secured £200k, made up of £50k equity and a £150k loan, from UK Steel Enterprise, the Tata Steel business-support subsidiary, and £100k from NPIF- FW Capital Debt Finance, managed by FW Capital and part of the Northern Powerhouse Investment Fund.
Based in Billingham, the consultancy incorporated at the beginning of the year and is already working with blue-chip companies across sectors that include oil and gas, manufacturing, food and power.
With an 11-strong team in electrical, control and instrumentation engineering, the projects include facility design, improvement of existing plants and engineering consultancy to ensure companies are compliant with regulations.
Covol Engineering is forecasting orders of around £700k in its first year and aims to double both turnover and its team in the second year.
Managing Director Jeremy Gadd has been able to draw on his wide experience of working in senior management on international and major projects in the sector including time with Lucite International, Vertellus Specialities and, more recently, GSE Systems Ltd.
Jeremy said: “We have already put together a team of engineers with the high level of skills and international engineering experience that we need at Covol and are confident that we will be adding to that number very soon.
“We already have a number of existing connections with blue-chip companies but have ambitious plans to grow both at home and in the global market.
“The investment package from UK Steel Enterprise and NPIF-FW Capital Debt Finance is allowing us to take the business forward. It demonstrates that both investors share our confidence in Covol’s potential for growth which is also welcome. We are also grateful to the team at Archers Law in Stockton- on-Tees who assisted Covol in setting up.”
Peter Taylor of UK Steel Enterprise, added: “This investment is enabling a fledgling engineering company based in one of our steel areas to pursue its well-thought out plans for expansion and create valuable jobs for Teesside.
“We are very pleased to have been able to put together an equity and loan package for Covol Engineering and that we could work alongside FW Capital with this investment.”
Nicky Atkinson, deputy fund manager of FW Capital, also commented: “The impressive Covol management team has the experience and expertise needed to grow the business further through the expansion of its already-strong client base.
“We’re very pleased to be working with UK Steel Enterprise on this investment and look forward to seeing Covol scaling up its operations in the future.”