Middlesbrough-based Valves & Flow Control Resources Limited (VFCR) has secured a five-figure investment from NPIF II – NEL Smaller Loans, which is managed by NEL Fund Managers as part of the Northern Powerhouse Investment Fund II (NPIF II). Established to provide valves and actuated solutions tailored to customer-specific applications, VFCR services clients across the mining, construction, and civil engineering sectors.
VFCR is using the investment to fund several new stock orders, enabling it to meet increasing demand and reduce lead times. It has also supported the recruitment of a new sales engineer to help drive business development across the North East and beyond, enabling its continued growth in the engineering supply sector.
This latest investment reflects NPIF II’s commitment to unlocking opportunities for ambitious businesses in historically underserved areas, including Middlesbrough and the wider Teesside region, by providing the funding they need to grow. Through backing smaller businesses like VFCR, NPIF II is helping to drive job creation, business growth, and economic development across Teesside, reinforcing the area’s reputation as a thriving hub for enterprise and innovation.
Richard McLoughlin, director at Valves & Flow Control Resources Limited, commented: “After taking ownership of the business, the opportunities to grow and expand our stock range were clear. The funding we have received has opened the doors for us to employ an external sales engineer and invest in significant stock to support our sales efforts and potential expansion into new markets.
“The investment has allowed us to implement a new strategy to increase our customer base by offering quality automation solutions to all industrial sectors across the UK from chemical manufacturing to power generation. We’re excited to expand over the coming years and grow our team even further.”
Michael Williams, investment executive at NEL Fund Managers, said: “It is a pleasure to support such a well-established and reputable business situated in Teesside. Our investment will allow VFCR to diversify its existing product offering and recruit an additional sales engineer who will subsequently enhance the business’ presence across the region. I’m looking forward to seeing what Richard and the wider team achieve in the future, and I have no doubt in Richard’s ability in successfully executing VFCR’s growth strategy.”
Sarah Newbould, senior investment manager at the British Business Bank, said: “NPIF II covers the whole of the North East, providing finance to areas that have typically faced barriers in receiving investment. Through this funding, VFCR is already creating jobs in the region, with more set to come. It’s a fantastic example of how investment can not only empower the business which receives it but also stimulate the regional economy through job creation.”
Operated by British Business Bank, the £660m Northern Powerhouse Investment Fund II covers the entire North and provides loans from £25k to £2m and equity investment up to £5m to help a range of small and medium sized businesses to start up, scale up or stay ahead.
The purpose of the Northern Powerhouse Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the North. The Northern Powerhouse Investment Fund II will increase the supply and diversity of early-stage finance for Northern smaller businesses, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.
NEL Fund Managers are also managing the NPIF II – NEL Debt Finance Fund which offers Debt Finance from £100,000 to £2m to established businesses looking to realise their growth potential.
For more information about NEL, please visit www.nel.co.uk or contact the investment team on 0345 369 7007.