County Durham-based North East Sheets and Panels Ltd (NESP) is set to increase its current turnover of £5.16 million after securing investments worth £200,000 from UK Steel Enterprise and £400,000 from IGF (Independent Growth Finance) to support a management buy-out.

The new managing director, Richard Williams, who has been with NESP since 2009, (www.nesp.co.uk) said: “We are delighted to have secured this investment and completed the buy-out successfully.

"We expect our workforce to grow over the next two to three years, and we have already taken on two additional people.

“The growth in the home improvement market is helping to drive our growth, and the demand for bathroom cabinets is proving to be an area with particular potential.

"We are very pleased that our confidence in the future of the business has been recognised by our investors.”

The company, which was founded in 1997, has a UK-wide customer base, with a particularly strong presence in the North East, Scotland and Yorkshire.

The MBO will help it to maintain its place as one of the leading manufacturers and suppliers of made-to-measure doors, panels, cabinets and worktops to customers in the fitted-kitchen, bathroom and bedroom sector.