Expanding Gratterpalm faces up to challenges on path to growth

The Leeds-based company, whose clients include Asda, Lakeland and DFS, said it would focus on organic growth but it has not ruled out acquisitions.

Last year the firm increased turnover by 10 per cent to 8.5m and said it is heading towards its 10m target.

But one of the biggest challenges, according to joint managing partner Gordon Bethell, is how to attract new business. Recent client wins include Morphy Richards and Greggs.

He said: "People generally knew us for Asda and, therefore, for retail and subsequently point of sale. This narrow positioning served us very well for many years but limited our growth potential. Over 87 per cent of our new business comes from ex-clients or contacts but we have an appetite to broaden our offer further."

He added: "We decided that we should face into the climate with a mindset of growth and these times really do bring about a fresh focus on the parts of the business that matter.

"We made fundamental changes to how we developed new business at the start of the year and consequently saved thousands by not wasting our time on briefs and opportunities where we wouldn't excel. We have a small board, which allows us to make quick decisions and take advantage of opportunities as they arise.

"Growth will continue to be driven organically by doing an excellent job for a wide range of clients, with growing accounts, who will ultimately stay loyal to Gratterpalm."

The company predicts one of the biggest growth areas to be its digital services and it is building up a digital team to attract more work.

Broadcasting is also expected to expand, aided by the recent appointment of a dedicated head of broadcast, and investment in a new edit suite.

The company, which is named on the Recommended Agency Register for its advertising and design services, recently changed its position in the market after facing increasing competition from other advertising agencies in the retail sector.

Over the last 18 months the company has increased its staff to 120 after appointing 10 new employees and also expanded its facilities.

It added new creative staff, a strategic campaign planner, an in-house viewing facility and editing suite and created a new business plan.

In addition, it also launched a new training academy – G Academy – this month, which it said was 300 per cent oversubscribed.

Mr Bethell is also calling for more help for Yorkshire's advertising agencies. "The trade talks itself down and compares itself under-whelmingly to London and holds itself back," he said. "It is not uncommon to produce creative work that is complimented in London and highly criticised in the region because of the sometimes-insular view.

"There are no significant trade organisations or trade publications that are pushing the Yorkshire advertising skills agenda, and this should be addressed."

He added: "The next three years will present some wonderful opportunities, the World Cup, the Olympics, the move away from recession. But above all, the opportunity for someone to create Yorkshire's number one full service advertising agency."