Car Repair Duo Secure Growth Funding from Midlands Engine Investment Fund II

A rapidly expanding vehicle repair business has secured a £375,000 business loan from the Midlands Engine Investment Fund II, through its appointed fund manager Frontier Development Capital (FDC), to help finance its further growth after taking on a fourth site.

Evolve Automotive Repair Centre – which has sites in Coventry, Birmingham and Leicester – acquired PL Carbodies in Warwick a few weeks ago. Since then it has doubled turnover at the site and increased the size of the team from six to 11.

Evolve’s founders Stefan Hill and Jack Thomas plan to continue growing the business and open new sites in other Midlands cities and aim to have 10 locations within the next four years.

Stefan, a former professional motorcycle racer, and Jack, who has a first-class honours in Business Management, set up Evolve four years ago when they were both aged 22. They used funding from their families to open the first site in Coventry and went on to open two further sites in 2023. Following the acquisition of PL Carbodies, they now employ a total of 40 staff across the four locations.

Evolve specialises in carrying out vehicle repairs on behalf of insurers and hire firms. The new site in Warwick has accreditations from BMW and Hyundai and the company aims to gain approvals from other manufacturers for Warwick and the other sites. It is also gearing up for the switch to electric vehicles (EVs), with the Leicester site already specialising in EV repairs.

Stefan Hill, Director, said: “Evolve aims to bring a modern approach to the vehicle repair trade. We recognise that having the right people is key to success and aim to offer good jobs in a safe and comfortable working environment. We also invest in technology and training. Evolve was set up with electric vehicles in mind as we believe they are the cars of the future and we are preparing for the changes ahead.

“Our business has come a long way since Jack and I were knocking on doors in Coventry. The funding from Midlands Engine Investment Fund II will support the business in the next stage of its growth.”

Ryan Cartwright of FDC added: “Stefan and Jack have gone from zero to four sites in just three years, demonstrating their ability to build a successful business from scratch. There is potential for them to grow the business further by winning new approvals and new clients and opening new sites in Midlands cities where there is a shortage of capacity for vehicle repairs.  We are pleased to be able to support their growth plans.”

David Tindall, Senior Manager at the British Business Bank, said: “The Midlands Engine Investment Fund II was created to support ambitious small businesses like Evolve. This funding will allow Stefan and Jack to continue Evolve’s growth plans, while providing sector specific employment opportunities in the region.”

Adam Cooksley at Navigate Commercial Finance provided fundraising advice to Evolve, while Jack Dunne at Harrison Beale & Owen provided accountancy services.

The £400m Midlands Engine Investment Fund II covers the entire Midlands region and provides debt finance from £25k to £2m and equity investment up to £5m 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.