Private equity outfit Octopus has provided around £4m of backing for Promotion Space to expand organically and through acquisition.
Steve Hughes, 42, the founder and chief executive of Promotion Space, said the investment would help him towards his goal of building a group with sales of up to £30m and pre-tax profits of up to £4m within three years. He hopes to achieve this through expansion in the UK and Europe.
In 2006, the company had revenues of £5m and posted profits of £600,000. It employs 23 people at its headquarters in Sandfield House, Water Lane.
Mr Hughes said today: "We intend to extend our services and this funding will support this objective and will enable us to accelerate the pace of growth at Promotion Space."
He is already in discussion with potential takeover targets as he seeks to expand into new areas, such as screen advertising and organising wedding fayres, food fairs and other events in shopping centres.
TV providers
The core business is organising brand and sales promotions in shopping centres for utility companies, digital TV providers, double-glazing, kitchen, credit card and other firms. Recently, it has begun developing services to help shopping centres maximise their space by opening more kiosk-type 'retail merchandising units', typically operated by local traders selling vases, flowers, sunglasses, mobile phone accessories and other goods.
Promotion Space works with more than 500 malls around the country, including the Trafford Centre, Manchester's Arndale, Stockport's Merseyway and The Galleries in Wigan.
Octopus, a London-based house with stakes in north west firms Accuma and Debt Free Direct, has taken a substantial minority holding in Promotion Space. Mr Hughes retains a majority stake. His management team also has shares.
Mr Hughes, who lives in Alderley Edge, grew up in Gorton, Manchester, and left school at 16 to stack shelves at Tesco. He worked his way up to become a store manager by the age of 20 and later joined mobile phone retailer The Link, working his way to divisional director level.
He left to establish the M4 Group in Stockport, supplying ringtones, news and soccer scores to mobile phones. M4 Group was bought by iTouch in 2002 and Mr Hughes set up Promotion Space the following year.
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