Specialist construction firm secures funding from the Midlands Engine Investment Fund II

Sealability, which offers concrete repairs and mastic pointing from its sites in Nuneaton and Aberdare, has secured the loan from the Midlands Engine Investment Fund II, through fund manager Frontier Development Capital (FDC).

It will enable new owner Karl Davies, who joined Sealability as a tradesman 24 years ago and acquired the business in December, to put his growth plans into action. His initial plans include extending the range of services at Nuneaton and creating jobs.

Sealability currently employs over 20 permanent staff across the two sites, with around 40 subcontractors on site at any one time. The business, which serves clients including local authorities, major contractors and housebuilders, was founded in Nuneaton in 1988 by the previous owner, Stephen Pattison.

Karl joined in 2003 after the company established a second site in his hometown of Aberdare. He has since played a key role in boosting its growth. In recent years, Karl has secured a series of major client wins and introduced a range of new services in Wales, including waterproofing and gas membranes for areas with radon and methane gas, damp proofing and building maintenance.

Turnover across the business has increased by over 50% in the past two years and the Aberdare depot has exceeded the size of the original Nuneaton site. The funding will boost the growth at Nuneaton and achieve a further 10% increase in turnover in the year ahead.

Karl Davies, Managing Director, said: “Having been involved in the growth of Sealability for over 20 years and held numerous roles within the company, I’m excited to be taking over as Managing Director to lead the business forward. The growth of Aberdare has shown the potential to add new services and my first priority will be to apply the same lessons to boost growth at Nuneaton.”

David Tindall, Senior Investment Manager at the British Business Bank, said: “The Midlands Engine Investment Fund II prides itself in supporting ambitious businesses in need of funding to grow and expand. Sealability is an excellent example of what the Fund stands for. The company’s ambitious plans to expand and develop its Midlands operations demonstrate a clear commitment to growth, and we are looking forward to providing the support needed to help turn those plans into reality.”

Ryan Cartwright of Frontier Development Capital added: “Karl has been very proactive in driving the growth of Sealability even during the most challenging market conditions. He knows the business inside out and is the ideal person to lead its next phase of growth. We are pleased to support his ambitions.”

Adam Cooksley at Navigate Commercial Finance provided fundraising advice to the company.

The £400m Midlands Engine Investment Fund II covers the entire Midlands region and provides equity investment up to £5m and debt finance from £25k to £2m to help a range of small and medium sized businesses to start up, scale up or stay ahead.

The purpose of the Midlands Engine Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the Midlands. The Midlands Engine Investment Fund II will increase the supply and diversity of early-stage finance for smaller businesses in the Midlands, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.