For many business owners, success brings a new set of challenges.
Winning new customers, investing in equipment and expanding into new markets are all signs that a business is moving in the right direction. Yet those same achievements often place new demands on cash flow and working capital, requiring leaders to think differently about how future expansion is funded.
It’s a position Antony Gray knows well.
When he launched Renovo Solutions in Stanley in 2018, after progressing from apprentice to operations director within the tooling industry, the focus was on building a specialist cutting tool manufacturing business with a reputation for quality and service.
Eight years on, that business has evolved into Renovo Tool Group, with operations across the UK and Ireland and a track record of continual investment in its capabilities. Along the way, the group has expanded its offering, entered new markets and strengthened its position through the acquisition of Scottish tooling specialist Gilmour Tools.
As the business evolved, however, so did its funding requirements.
“The challenge changes as the business grows,” says Antony. “In the early days, it’s about building a platform and creating opportunities. As you grow, it’s about making sure the business is structured in a way that allows you to keep moving forward and take advantage of the opportunities in front of you.”
Having previously supported Renovo with funding linked to its wider growth journey, Corporate and Commercial Business Solutions (CCBS) was once again brought into discussions as the group reviewed how its existing funding arrangements could better support its future plans.
At this stage, Renovo had invested heavily in machinery and equipment across the group. While those assets had helped drive the company’s development, they also represented capital tied up within existing funding arrangements.
The objective wasn’t necessarily to borrow more. Instead, the business wanted to unlock value already sitting within its asset base, improve cash flow, and create greater flexibility for future investment.
Working alongside Renovo and coordinating discussions with NEL Fund Managers, Reward Funding and Durham Business Growth, CCBS helped bring together a funding package designed to support the group’s next phase of development. At the centre of the package was a £1.6m asset refinance facility from Reward Funding, alongside investment from NEL Fund Managers and grant support from Durham Business Growth.
Together, the package released capital back into the business, reduced finance commitments by around £140,000, and created additional headroom for future investment.
For Antony, that’s where the real value of the transaction lies.
“It gives us options,” he explains. “We’ve always been a business that looks for ways to improve, invest and grow. Having greater flexibility means we’re in a stronger position to continue investing in our capabilities, supporting our customers, and pursuing the opportunities we see in the market.”
The deal also reflects a relationship that has developed over several years, with CCBS supporting Renovo through different stages of its journey and helping to ensure funding arrangements evolve alongside the business itself.
For Andrew Welton, Relationship Development Director at CCBS, that’s ultimately the role of an adviser.
“The best outcomes come from understanding the bigger picture. This wasn’t about completing a transaction. It was about helping a successful North East business create the platform for its next stage of development.”
For Renovo, the latest funding package marks another chapter in a journey that began with a start-up in County Durham eight years ago. For other growing businesses, it’s a reminder that growth doesn’t stand still, and neither should the funding structures that support it.
ccbsg.co.uk