Reward provides £1.6m asset finance facility for Renovo Tool Group
Reward Funding has completed a £1.6m Asset Finance funding facility for Renovo Tool Group, supporting the consolidation of multiple existing facilities to create a simpler and more efficient funding structure for the group’s continued growth.
Established in 2018 and headquartered in Stanley, County Durham, Renovo Tool Group specialises in round shank precision cutting tool manufacturing and reconditioning. The group operates across both business-to-business and direct-to-consumer markets through a portfolio of specialist businesses, serving a wide range of customers within the UK and international engineering and manufacturing sectors.
Renovo was launched when its founder, Antony Gray, recognised the North East was an underserved market. He also saw that the business would need to build its own skilled workforce to support long-term demand and growth. This led to the development of Renovo’s own apprentice programme, creating a pipeline of apprentices and highly skilled manufacturing specialists.
As part of the wider growth strategy, the group has also recently completed the acquisition of a key supplier business that was not working to its full potential, Gilmour Tools, an insert production facility based in Larkhall, Scotland. This has strengthened Renovo’s market position and diversified its customer base.
Renovo Group now consists of two dedicated cutting tool production facilities and two distribution businesses (Renovo Tool Co), one based in the UK and the other in Dublin, Ireland. The group’s growth over the last eight years has been substantial, and Reward’s facility will allow this growth to continue in line with Renovo’s strategic plans.
The Asset Finance deal with Reward has been used to consolidate funding arrangements across the group, simplifying monthly payments and generating cost savings that can be redirected towards future growth initiatives.
The £1.6m funding formed part of a three-way package, which also included a large six figure investment from NEL Fund Managers and £100,000 in grant support from Durham Business Growth. The Asset Finance facility underpinned the other two elements of the project, with none of the three components able to proceed without all parts aligning and working in synergy.
Antony Gray, managing director of Renovo Tool Group, said: “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.”
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.”
Andrew Welton, relationship development director at CCBS Group, who advised Renovo throughout the funding process, added: “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.”