Spotnails is a Caerphilly‑based importer and distributor of industrial tools, nails and fasteners serving the UK construction sector.
Operating for more than 70 years, the company has developed a strong industry presence, combining long‑established heritage with an ambition to grow and diversify. Its growth shows not just access to capital, but the benefits of a long‑term, relationship‑driven funding approach that reinforces stability and sustainable progress.
Management
Managing Director Craig Bates originally acquired the business in a 2019 management buyout (MBO) backed by the Development Bank. Since then, he has led Spotnails through a period of operational strengthening, expansion into new facilities, additional hiring, and the launch of a new e‑commerce platform.
Business purpose
The company supports the construction sector through the supply of essential fastening tools and consumables, providing reliable distribution to contractors and industrial users across the UK. Its ongoing expansion - including a move to a larger warehouse and service enhancements - reflects a commitment to continued growth, improved efficiencies and strengthened customer offering. This aligns with a broader pattern seen across Welsh businesses where patient capital can help convert operational improvements into sustainable, long‑term growth.
Working with us
Date of most recent funding round: 2024/25 period (from press release context)
Size: £1.2 million loan
Fund: Wales Flexible Investment Fund
The Development Bank of Wales partnered with HSBC UK to deliver a combined £3 million funding package, comprising £1.2 million from the Development Bank and £1.7 million from HSBC UK. The funding allowed Spotnails to refinance and restructure existing facilities - including the buyout of earlier Development Bank equity - while supporting the next stage of growth. This approach reflects how our continued support, delivered alongside disciplined financial structuring, ensures businesses such as Spotnails have the headroom to keep growing without compromising long‑term resilience.
This continues a long‑term partnership between Spotnails and the Development Bank, following the original £1.7 million MBO facility in 2019 and a £500,000 equity warrant issued in 2023 to accelerate expansion plans.
What people are saying
Craig Bates, Managing Director, 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 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, 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, 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.”
The impact
The new funding reinforces Spotnails’ ability to invest in growth following a recent move into a larger warehouse, the hiring of additional staff, and the development of a new e‑shop. The partnership between the Development Bank of Wales and HSBC UK provides the company with long‑term financial stability and strategic headroom, enabling continued investment, operational improvements and market expansion.
The Development Bank’s flexible and patient capital approach has supported Spotnails through its MBO, strategic scaling, and its current growth phase, ensuring stronger foundations for sustainable development.
