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A Bedwas-based tools business has secured nearly £3 million in funding as it looks to continue its growth.

Spotnails, based on Bedwas House Industrial Estate, imports and distributes industrial tools, nails, and fasteners for the UK construction sector.

It has secured a £1.7m loan from HSBC, and a £1.2m loan from the Development Bank of Wales through the Wales Flexible Investment Fund – which is funded by the Welsh Government.

The funding provides Spotnails, which has been in business for 70 years, with fresh scope to grow, following a recent move to a larger warehouse, the recruitment of two additional staff, and the launch of a new online shop.

It is not the first time the firm has received support from the Development Bank. In 2019, it received £1.7m to support a management buyout, which allowed managing director Craig Bates to acquire the business from its previous owners.

A £500,000 equity warrant followed in 2023 to help accelerate its expansion plans.

Following the latest round of support, Mr Bates said: “The Development Bank has been really good to us over the last six years. This new joint investment with HSBC UK gives us the headroom we need to continue expanding and to pursue sustainable growth.

“We needed to restructure our funding, and were keen to maintain our link with the Development Bank given the strength of our relationship with them to date, and the value that relationship has added to our business. It’s a win‑win all round.”

Kabitah Begum, Senior Portfolio Executive at the Development Bank of Wales, said its relationship with Spotnails puts the business “in a strong position for further growth”

She continued: “This joint funding package with HSBC UK enables us to continue our partnership following what would otherwise have concluded a successful cycle of investment.

“Our £1.2 million loan, delivered alongside HSBC UK’s support, gives Spotnails the platform to keep expanding, and we look forward to continuing our work with them as a long-term partner, providing value over and above our investment.”

Donagh Kenny, of HSBC UK, said: “Spotnails has spent more than seven decades building a strong heritage in the Welsh construction sector, so it’s great to be able to back a business whose longstanding history continues to shape its ambition for the future.

“This joint funding package gives the company the headroom to keep evolving and investing with confidence.”