Dene Group gets funding for expansion

Oct 21 2009 By Iain Laing, The Journal

FILM production firm Dene Group has secured a new £600,000 financial facility as it prepares to expand on the back of the internet TV revolution.

The Newcastle company will use the funding to continue the growth of its fledgling division, which focuses on IPTV – programming transmitted via broadband on the web or direct to a television set. It is expected to be in 22 million homes across Europe by 2012.

The business is looking to invest in the staff and technology it needs to cash in on the impending global surge in demand for online programming.

It is also considering opening a satellite office in Manchester ahead of the BBC’s plans to move several departments out of London to Salford by 2011.

Meanwhile, managing director Steve Salam has hinted that the next six months could see the company move to a larger premises in Newcastle to facilitate its growth.

The last 12 months have seen Dene enjoy a period of strong growth, as it added animation company Qurios – formerly of Hartlepool – and digital agency Moko to its stable.

Its growing order book includes work on a Doctor Who DVD project, a contract with Monster Travel, while it is also currently conducting an IPTV pilot scheme with a unnamed bank.

It is also making waves overseas, with two recent contracts with online gambling firms based in Israel and a multi-national fragrance company from Switzerland, involving filming footage in Uganda.

Mr Salam said: "With full order books well into next year, we knew we needed financial support to continue to move the company forward and to fulfil the order book.

"We approached our existing bankers at the time and, despite the company’s track record and continuous growth, they were unable to assist us."

The company’s new funding facility has been provided by Royal Bank of Scotland (RBS) through the Government’s Enterprise Guarantee Scheme, which is designed to give businesses the necessary working capital or investment they need.

The facility was secured after Dene called in Rose Lewis from finance and advisory group Pembridge Partners to explore funding options.

Ms Lewis said: "Lenders have tightened their belts over the last few months but we are aware that, if presented with the right business case, banks are willing to lend."

The group, which expects to see its revenue climb from £2.2m to £3m by next year, plans to create 10 jobs this year in its new communications division.