ONE of the region's best-known toy shops is expanding its online business thanks to a membership organisation.

Lambs Toys, in Darlington, has received financial support from the Service Network, based in Sunderland, which has allocated grants totalling £200,000 to a number of small to medium-sized businesses to improve and develop their websites.

The Service Network is a not-for-profit organisation supporting 160 companies in the North-East.

Lambs Toys, which last year won the Regional Toy Shop of the Year title, received funding worth more than a third of the £8,000 it cost to develop its online strategy.

Director Anthony Lamb said: "Over the last year alone, our turnover increased by 30 per cent, due entirely to the rapid growth in online sales, and we anticipate recruiting a further three full-time staff as a direct result."

The success of Lambs Toys online strategy has resulted in its planned move in the summer to a warehouse where they will be able to stock more toys.

Mr Lamb said: "Without this funding, we simply would not have been able to achieve what we have."

Tracey Bransby, executive director of Service Network, said: "We know of five jobs that have already been created within companies that have taken advantage of this funding, but the research we conducted is showing this is just the tip of the iceberg.

"Once on the e-commerce ladder, the benefits gained by companies are on-going."