A fast-growing tool manufacturing and reconditioning business is set to double its turnover following a strategic 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).

Based on Tanfield Lea Industrial Estate in County Durham, Renovo Tool Group is a collective of specialist tooling businesses, combining cutting tool distribution, custom manufacturing and reconditioning expertise to help manufacturers improve productivity, reduce costs and operate more sustainably. They also boast a strong reputation as the only privately owned cutting tool producer in the North East and Scotland.

The finance from NPIF II - NEL will support the group’s next phase of growth supporting significant investment in advanced equipment, creating new skilled jobs and increasing production capacity. The investment also played a pivotal role in unlocking a wider £1.6 million funding package from Reward Finance, alongside £100,000 of grant support from Durham Business Growth, delivered in partnership with UMi.

The deal marks the fourth successful investment NEL has made in the Renovo group. The relationship began in 2019 with funding for Renovo Solutions, enabling the business to expand its capabilities and capitalise on new growth opportunities. NEL has since provided further support with six-figure investments in 2020 and 2022 to help accelerate the group's development through successive stages of growth, with all previous loans repaid in full.

Antony Gray is founder and Managing Director of Renovo Tool Group. Antony says: “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.”

Rachael Munro, Investment Executive at NEL led on the investment. Rachael adds: “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.”

Sarah Newbould, Senior Investment Manager at the British Business Bank said: “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.”

Operated by British Business Bank, the £660m Northern Powerhouse Investment Fund II covers the entire North and provides loans from £25k to £2m and equity investment up to £5m to help a range of small and medium sized businesses to start up, scale up or stay ahead.

The purpose of the Northern Powerhouse Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the North. The Northern Powerhouse Investment Fund II will increase the supply and diversity of early-stage finance for Northern smaller businesses, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.

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.