Headed by former Morrison Facilities MD Phillip Russell, Renovo will focus on the provision of reactive gas, electrical and building fabric maintenance.

The group has already made its first acquisition, Hampshire-based 1st Saxon-Clenmay, which provides gas and electrical reactive services to landlords on the South Coast. Renovo paid £14 million for 1st Saxon-Clenmay, which has 350 staff and runs an apprenticeship programme targeting young people from the social housing estates it maintains.

Renovo is in talks with a number of potential further acquisitions which would expand its geographical reach and range of services, according to Sovereign.

Yorkshire Bank has provided the debt for the acquisition of 1st Saxon-Clenmay and will continue to provide loans for further acquisitions.