Alchemists aiming to roll out their magic across UK

Mar 25 2008 by Peter McCusker, The Journal

THE huge success of a tiny business advice group in the North East has spurred plans to roll out the model across the country.

The Alchemists, which is based in Newcastle, has helped 50 medium-sized businesses grow in its five years and helped them to add an estimated £100m to the North East economy.

Now the five-year-old group, which has been funded with £1.5m from regional development agency One NorthEast (ONE), is about to be a self-funding private firm and expand its service across the UK.

The Alchemists is owned by chief executive Lucy Armstrong, chairman Bill Teasdale, vice-chairman Peter Allan and Helen Sharpe.

Ms Armstrong said: “We identified 50 companies in the North East which would find our service useful and we have worked with all 50 of them.

“Since we launched, we have helped add £100m to the North East economy. We are now taking the service further afield. We are currently working with businesses in Lincolnshire and Stockport, but we will keep our base in the North East.”

ONE’s funding runs out at the end of this month and The Alchemists will go it alone.

ONE head of business, enterprise and skills Tim Pain said: “The Alchemists spotted a gap in the market to match medium-sized businesses with the very high level expertise they need to grow to that next level, and for One NorthEast this was an important area for investment.

“Our aim is to enable projects to reach the point where they can sustain themselves, and we’re pleased to see The Alchemists now at that stage.”

Ms Armstrong added: “We focus exclusively on high-growth businesses – typically those with the potential to double their value each year for the next three years.

“Our aim is to accelerate this rate of growth and often achieve a step change in their development.”

The Alchemists has a bank of business experts – who currently number 2,500 – which it uses to help a company move on to the next level.