Spotnails, a Welsh importer and distributor of industrial tools, nails and fasteners for the UK construction sector, has secured almost £3 million in joint funding from the Development Bank of Wales and HSBC UK to support the next phase of its growth.
The Caerphilly-based company, which has operated for more than 70 years, has received a £1.7 million loan from HSBC UK and a £1.2 million loan from the Development Bank through the Wales Flexible Investment Fund.
The refinance allows Spotnails to restructure existing facilities, including the buyout of earlier Development Bank equity, while sustaining its long-term relationship with both lenders.
This latest investment marks the continuation of a partnership with the Development Bank which began in 2019, when the Development Bank provided £1.7 million to support a management buyout enabling Managing Director Craig Bates to acquire the company from its previous owners. A £500,000 equity warrant followed in 2023 to help accelerate the company’s expansion plans.
Over the course of this relationship, the Development Bank has provided patient capital and strategic support that has underpinned Spotnails’ evolution – from the MBO through to its current growth phase. This value add has included flexible structuring at key moments, continuity of portfolio support, and a funding approach aligned with the company’s long-term ambitions, all of which have helped create the conditions for sustainable expansion.
The new capital provides Spotnails 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 e‑shop.
Craig Bates, Managing Director at Spotnails, 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:
“We’re pleased that our long-term relationship with Spotnails has helped put the business in a strong position for further growth. 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, Relationship Manager at 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. We’re proud to work alongside the Development Bank of Wales to help drive the next chapter of Spotnails’ growth.”
Financed by Welsh Government, the £500 million Wales Flexible Investment Fund supports Welsh businesses with terms of up to 15 years. Loans, mezzanine finance, and equity investments are available from £25,000 to £10 million.
For more information, visit developmentbank.wales
