North firm aims to double turnover as military deal moves closer

Dec 15 2009 by Iain Laing, The Journal

A TECHNOLOGY firm is close to striking deals with US and European military organisations as part of plans to double turnover in five years.

Analox is aiming for a five-fold increase in its £1m-a-year military work on the back of demand for its gas analysers, which are used for submarine atmosphere monitoring and military diving applications.

Earlier this year the company landed a £500,000 contract with the Ministry of Defence to supply submarine escape analysers to 72 submarines.

Now the Stokesley-based firm is in talks to supply its equipment to overseas military organisations as it looks to increase turnover from £6m to at least £12m by 2014.

Managing director Mark Lewis, who is hopeful of sealing the deals in the next six months, said: “One thing we are good at is the military side of things. We are well connected with military organisations in the UK and US.” Analox also operates in the commercial diving, sport diving, industrial safety, hospitality, pubs and breweries markets – a diversification strategy that has seen it ride out a downturn in its beverage business.

Mr Lewis said: “When one market is down, we’re pushing products and services into others.”

He said the company was sufficiently cash-generative to expand without resorting to a flotation.

Analox is aiming to boost revenues primarily through organic growth and has split its sales operation into two separate divisions – commercial and military.

Rob Cornish has been appointed to head up the commercial arm, which clinched a £500,000 order from Italian distributor Drass and an exclusive distribution deal for Austria with engineering giant The Linde Group.

Previously Mr Cornish, 37, worked in sales management in the telecommunications and software sectors.