Renovo Tool Group, a County Durham-based tools business, is targeting a doubling of turnover following a £1.6 million investment package. The company, headquartered in Tanfield Lea, operates as a collective of specialist tooling businesses, offering cutting tool distribution, manufacturing, and reconditioning services to help manufacturers improve productivity, reduce costs, and operate more sustainably.
Funding package details
The £1.6 million Asset Finance facility, provided by Reward, has been used to consolidate funding arrangements across the group. This consolidation simplifies monthly payments and generates cost savings that can be redirected towards future growth initiatives. The 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, with none of the three components able to proceed without all parts aligning and working in synergy.
Renovo was launched in 2018 by founder Antony Gray, who identified a gap in the market in the North East. He recognised the need to build a skilled workforce to support long-term demand and growth, leading to the establishment of the Renovo apprentice programme, which creates a pipeline of apprentices and highly skilled manufacturing specialists.
Acquisition and growth strategy
Recently, the group completed the acquisition of Gilmour Tools, an insert production facility based in Larkhall, Scotland, which was not working to its full potential. Renovo now comprises two dedicated cutting tool production facilities and two distribution businesses under Renovo Tool Co, one based in the UK and the other in Dublin, Ireland.
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.” He added: “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.”
Partnership and support
Robert Still, managing director at Reward Asset Finance, commented: “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.” He noted that the funding solution was designed to support the business both today and as it continues to grow, simplifying the funding structure and providing flexibility.
Rachael Munro, investment executive at NEL Fund Managers, said: “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.” She expressed delight in working with the team as they drive the business through its next stage of growth.
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.” She highlighted that Renovo’s 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.
The funding package is expected to enable Renovo to pursue strategic opportunities, enhance its capabilities, and achieve its turnover ambitions.
