A supplier of ICT equipment says it wants to treble turnover in the next three years following a six-figure investment from existing shareholders and the Finance for Business North East Growth Fund.
Seaham-based Powerdial Services, once a subsidiary of Innovative Software Direct, has reached an annual turnover of around £2m and is aiming for £6.5m.
The firm is hoping new technologies such as digital signage seen in the likes of shopping centres and cloud-based business communication applications will spur growth as it plans to double its existing workforce over the next 18 months.
The investment is comprised of money from the Finance for Business North East Growth Fund, managed by NEL Fund Managers, and capital provided by the firm’s shareholders.
Paul Farn, Powerdial’s managing director and co-owner bought the profitable firm in 2011, from its parent firm, Innovative Software Direct, which had fallen into administration at the time.
Mr Farn said: “Our industry has changed more rapidly in the last three years than in the previous 30, and we’ve positioned ourselves to take advantage of ever increasing demand for advanced business applications which enhance companies’ commercial performance and drive down their cost base.
“We will continue to deploy our portfolio of market-leading Unified Communications solutions, and are embracing all of the new wave technologies which will enable us to continue to deliver important benefits for our clients across the board.
“Our future success will, as ever, be based upon the people we employ, and the jobs we’re looking to sustain and create will all focus on growing markets which have strong future prospects.
“The NEL team has been highly supportive of our plans, and their investment is central to the implementation of our three year expansion programme. We’re now ready to really push the company forward and are highly confident of hitting the £6.5m annual turnover target we’re aiming for.”
Mr Farn said there was considerable scope for Powerdial to provide the kind of digital signage normally provided by major industry players such as JC Decaux, into high street retailers and hotels.
David Thomas, investment executive at NEL Fund Managers, added: “Powerdial has built a highly reputable national brand and achieved admirable commercial success in the middle of the worst economic downturn in decades, and the management team has a clear, carefully-developed strategy to further strengthen its position in the UK and overseas from a North East base.”
Powerdial’s expansion plans have been bolstered with the appointment to its board of US Asset Management Fund owner and serial investor, Dr Ranga Krishna.
Aimed at regional businesses which are at a development and growth stage, the Growth Fund forms part of the wider Finance for Business North East Fund.
Managed by North East Finance, it will see £142m of investment capital injected into the region by the European Investment Bank and the European Regional Development Fund 2007-13 over a five year period.