Tool group sharpens growth ambitions with funding boost

A County Durham tool manufacturing and reconditioning group is aiming to double its turnover after securing a multi-million-pound funding package.

Stanley-headquartered Renovo Tool Group has received a six-figure investment from NPIF II – NEL Debt Finance, managed by NEL Fund Managers as part of the Northern Powerhouse Investment Fund II (NPIF II).

The backing helped unlock a wider £1.6 million funding package from Reward Finance, alongside £100,000 of grant support from Durham Business Growth, delivered in partnership with County Durham-based business support firmUMi.

Bosses say the investment will fund advanced equipment, increase production capacity and support the creation of skilled jobs as Renovo enters its next phase of expansion.

Antony Gray, founder and managing director of Renovo Tool Group, said: “This latest investment will support the next phase of our growth journey, helping us to double turnover, continue rewarding our loyal team, create new jobs and invest with confidence despite the challenging economic environment.

“We view NEL as a genuine funding partner, we’ve worked with them for more than six years, so they’ve been with us through all our growth milestones. 

“Their expertise, proactive approach and commitment to providing funding solutions to growing businesses is exactly what ambitious manufacturers need to achieve their growth plans.”

 Established in 2018, Renovo Tool Group brings together specialist businesses spanning precision cutting tool manufacturing, distribution and reconditioning, serving business-to-business and direct-to-consumer customers across the UK and international engineering and manufacturing sectors.

It is also the only privately owned cutting tool producer in the North East and Scotland.

The latest deal marks NEL’s fourth investment in the Renovo group, with the relationship dating back to 2019 when funding supported the expansion of Renovo Solutions.

Further six-figure investments followed in 2020 and 2022, with all previous loans since repaid in full.

The new package will now provide additional firepower for Renovo’s growth strategy as it looks to scale production and expand its workforce while continuing to invest in more sustainable manufacturing solutions.

Rachael Munro, investment executive at NEL Fund Managers, who led on the investment, added: “Despite operating in a challenging manufacturing environment, Renovo has continued to invest, innovate and grow, building a reputation for technical excellence and positioning itself to capitalise on increasing demand from high-value engineering and advanced manufacturing sectors.

“We’re delighted to be working with Antony and his team as they drive the business through its next stage of growth, and I’d like to wish them every success as they do so.”  

Robert Still, managing director at Reward Asset Finance, added: “Renovo is a fantastic example of a business that has taken a measured and strategic approach to growth over the years.

“Antony and the team have consistently invested in the right areas, from skills and talent through to expansion and acquisition. 
 
“Our focus was on delivering a funding solution that supports the business both today and as it continues to grow.

“By consolidating multiple agreements into one tailored facility, we’ve simplified the funding structure, and helped provide the flexibility the business needed to focus on growth ambitions.”

The £660 million NPIF II fund, which is operated by the British Business Bank, provides loans from £25,000 to £2 million and equity investment up to £5 million to help a range of small and medium sized businesses, driving innovation and creating opportunities for businesses to grow, scale, and thrive.

Sarah Newbould, senior investment manager at the British Business Bank, added: “It’s great to see the Northern Powerhouse Investment Fund II continuing to support ambitious manufacturers like Renovo Tool Group, building on its long-standing relationship with the business through continued investment. 

“Renovo’s continued growth and focus on innovation reflects the strength of the North’s advanced manufacturing sector and aligns with the Government’s Industrial Strategy, supporting regional economic growth and helping businesses to build for the future.”

NEL Fund Managers are also managing NPIF II – NEL Smaller Loans, which offers investments from £25,000 to £100,000 to new and growing businesses.

To find out more about NEL Fund Managers, read our interview with chief executive Paul Scott on supporting North East SME growth in the latest edition of N magazine.

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