TWO furniture companies have secured the funding they need to expand.

Europa Sofabeds and Brundellwood Upholstery, both run by the same management team in Newton Aycliffe, have seen sales increase 150 per cent to £25m in the past six years.

Bank of Scotland Corporate and Bank of Scotland Cashflow Finance have agreed to fund the further growth of the company, which forecasts a turnover of £30m by 2010.

Managing director of Europa and Brundellwood, John Forrester, took over the business in 1999, when Europa Sofabeds was operating on its own with a £10m turnover.

Both furniture companies already have a strong manufacturing base and are expanding. They employ 270 staff and expect to take on another 30 during the next five years.

Financial director Stuart Hargrove said: "We have grown from £10m turnover in 1999. We won't see as rapid an expansion now as we did in the past five or six years, but a £30m turnover within five years would be reasonable."

He said new financing was important to carry out the company's plans.

"This gives us greater working capital to fund expansion," he said. "Inevitably, we have had to source more products from overseas.

"We are bringing product from Poland and China and other countries. Buying from abroad, we are funding new suppliers and product needs to be paid for earlier than with existing suppliers."