Reward Funding has provided a £1.6 million asset finance facility to Renovo Tool Group, supporting the consolidation of several existing funding arrangements.
The facility creates a simpler funding structure, reduces monthly costs and releases working capital to support the County Durham-based manufacturer’s next stage of growth.
Established in 2018, Renovo specialises in the manufacture and reconditioning of round shank precision cutting tools. It serves UK and international engineering and manufacturing customers across business-to-business and direct-to-consumer markets.
The transaction forms part of a three-way funding package that also includes a large six-figure investment from NEL Fund Managers and £100,000 of grant support from Durham Business Growth.
FUNDING PACKAGE SUPPORTS EXPANSION
Reward’s facility underpins the other two elements of the package, with all three components required to proceed together.
Renovo’s wider group comprises two cutting-tool production facilities and two distribution businesses, with Renovo Tool Co operations in the UK and Dublin.
The group also recently acquired Gilmour Tools, an insert production facility in Larkhall, Scotland. The acquisition strengthens Renovo’s manufacturing capacity, market position and customer diversification.
Renovo develops its own apprenticeship programme after founder Antony Gray identified both a gap in the North East market and the need to create a pipeline of skilled manufacturing specialists.
Antony Gray, managing director of Renovo Tool Group, says: “We have spent the last year creating the building blocks for sustainable long-term growth across the group. The support from Reward will underpin this and ensure the delivery of our next phase of expansion.
“Being able to consolidate multiple facilities into a single structure gives us greater clarity and control, while freeing up valuable funds that we can reinvest into strategic business opportunities. The manufacturing sector plays a critical role in the UK economy, and we’re focused on continuing to build the skills and capability needed to serve that market.”
FACILITIES CONSOLIDATED
Robert Still, managing director at Reward Asset Finance, adds: “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.”
Andrew Welton, relationship development director at CCBS Group, which advised Renovo throughout the funding process, adds: “We were delighted to support the client in securing a solution that not only reduced their monthly repayments, but also unlocked significant working capital headroom to support future growth.
“As the business continued to expand, it was important to ensure the funding structure evolved alongside its ambitions. Reward were excellent throughout the process, taking a pragmatic and collaborative approach that helped us deliver a solution tailored to the client’s long-term objectives while ensuring the transaction completed smoothly and efficiently.”
Main picture: (Left to right) Robert Johnson; Andrew Welton; Robert Still; Antony Gray and Chris Dobson.
