Reward provides £1.6m asset finance facility to support Renovo Tool Group growth

Reward Funding has completed a £1.6 million asset finance facility for Renovo Tool Group, consolidating a number of the manufacturer’s existing funding arrangements as it prepares for its next phase of growth.

The facility has been used to bring multiple agreements across the group into a single funding structure, reducing monthly repayments and creating additional working capital capacity for future investment.

Established in 2018 and headquartered in Stanley, County Durham, Renovo specialises in the manufacture and reconditioning of round shank precision cutting tools. The group operates across business-to-business and direct-to-consumer markets, serving customers in the UK and international engineering and manufacturing sectors.

Renovo was founded by Antony Gray after identifying what he saw as an underserved market in the North East. Recognising that access to skilled employees would be important to the company’s longer-term development, Renovo subsequently established its own apprenticeship programme to develop a pipeline of manufacturing specialists.

The group has expanded significantly over the past eight years and recently acquired Gilmour Tools, an insert production facility based in Larkhall, Scotland. The acquisition of the supplier business has added to Renovo’s manufacturing capabilities and diversified its customer base.

Renovo Group now comprises two cutting tool production facilities alongside two Renovo Tool Co distribution businesses, located in the UK and Dublin, Ireland.

Reward’s £1.6 million asset finance facility forms part of a wider three-way funding package supporting the group’s plans. This also includes a large six-figure investment from NEL Fund Managers and £100,000 of grant funding from Durham Business Growth.

The three elements were structured as an interdependent funding package, with the Reward facility supporting the completion of the wider transaction.

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.”

CCBS Group advised Renovo throughout the funding process, working with the parties to structure the refinancing and secure additional working capital headroom.

Andrew Welton, Relationship Development Director at CCBS Group, said: “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.”