Modem manufacturer Dataflex Design Plc has received UKP400,000 from the Greater London Enterprise company in return for 28% of the equity and a seat on the board of directors. Dataflex says that the money is crucial to maintaining its current annual growth of around 80%. It will be used to improve the company’s presence in continental Europe, which represents a mere 2% of revenue at present. The company attempted to raise UKP500,000 in September 1988 under the Business Expansion Scheme in order to finance European expansion (CI No 1,022). It offered 500,000 ordinary 10p shares at UKP1, but the take-up raised only UKP110,000. Dataflex attributes this to the success of Assured Tenancy issues, which attracted three times more money than any previous industrial issue. Consequently, the UKP400,000 from the Greater London Enterprise Company makes up the unexpected shortfall. Dataflex was established in 1985, and now employs 31 staff. It turned over UKP1.4m last year, and is forecasting UKP2.2m and UKP3.4m in the next two years; it intends to expand in the rest of Europe by appointing distributors and establishing licensing agreements.
