A TOOL hire business is about to expand and create up to 12 jobs after securing funding of £250,000.

DJ Tool Hire, which has seven branches in the North-East, hopes to open outlets on Teesside and in North Tyneside and Northumberland.

The company, which employs 40 staff, is planning to grow with help from fund management company NEL.

Director Tony Appleton said the money had allowed the company to invest in tools, which created opportunities for expansion.

He said: "We decided our efforts needed to centre around increasing the company's customer base, which prompted our approach to NEL, as this required further investment in the business through the purchase of new tools.

"The money has enabled us to source new equipment, allowing us to meet client needs in a cost-efficient manner. Progress since then has been very positive."

DJ has branches in Sunderland, South Shields, in South Tyneside, Newcastle, Gateshead, Durham, Stanley and Consett, both County Durham. Each additional site would create up to four jobs.

The company, which was established in 1977, hires out a range of equipment and tools.

NEL's financial analyst, David Thomas, said: "Tony and his colleagues convinced us that they would be able to extend their market share through our investment and it has been good to see them move forward with new equipment purchases in direct response to customer demand.

"We are confident that their growth will be solid and closely managed as they expand into additional premises and take on extra staff."