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NPIF II invests in Northumberland electrical firm

The Northern Powerhouse Investment Fund II (NPIF II) has completed its first investment in Northumberland, with a five-figure loan to electrical contracting firm LBM Group (NE) Ltd (LBM).

LBM Team members

This investment, managed by NEL Fund Managers, will enable LBM to expand its team, purchase new assets, and meet the growing demand for sustainable electrical services.

Expanding renewable services

Based in Blyth, LBM specialises in solar PV technology, battery storage installation, and electric vehicle charging point installation. The funding will allow the company to hire two full-time engineers and add a new vehicle to its fleet. LBM has also secured contracts for four new build estates and will continue tendering for more projects in both the public and private sectors.

Mark Hedley, managing director at LBM Group (NE) Ltd, commented: “Securing this investment from NPIF II has been pivotal for our business. It has provided us with the financial flexibility to expand our team and invest in the tools and vehicles we need to meet the growing demand for our services, particularly in the renewable energy sector.

“This funding has allowed us to not only fulfil existing contracts but also position ourselves for future opportunities. NPIF II’s support has been instrumental in continuing our growth journey, enabling us to scale up faster and continue delivering for our clients.”

Supporting sustainable growth

Susan Snowdon, investment executive at NEL Fund Managers, said: “LBM’s impressive track record and clear plans for the future made a compelling case for investment, and they’re now well equipped to start realising more of their growth potential.

“We’ve worked with many innovative North East firms that are focused on low carbon and renewable energy technologies, and are very pleased to be extending our involvement in these sectors through this latest investment.”

Sarah Newbould, senior manager at British Business Bank, added: “LBM is an example of the kind of ambitious business that NPIF II was designed to support. It not only contributes to economic growth but also plays a role in advancing sustainability on a broader scale.

“By installing solar panels and EV chargers, the firm is directly supporting the transition to a more sustainable Britain. We hope it will inspire other local businesses to explore how NPIF II can support their growth and sustainability initiatives.”

Driving economic growth

The £660m Northern Powerhouse Investment Fund II covers the North of England, providing loans and equity investment to help small and medium-sized businesses start up, scale up, or stay competitive. The fund aims to drive sustainable economic growth by supporting innovation and creating opportunities for businesses across the region.

Image: LBM Group