ADVANCED imaging company Comeleon plc has put in place the production infrastructure and established the cornerstone agreements that will lead to growth for the business.

That was the message from chairman John Pither, as he reported the company's first results since flotation on the Alternative Investment Market in December last year.

The results cover the three-month period from flotation to the end of March.

Despite making a loss of £1.3m in that period, the company believes it is set for an impressive pattern of development.

The firm raised £9.4m from its flotation to fund that future development.

Sales in the three-month period were £56,000, but the company has an advance order book of £150,000.

Mr Pither said yesterday: "The past six months have seen the initial period of growth in sales and orders that were anticipated in the company's business plan."

In March, the company moved into new headquarters at Tanfield Lea, Stanley, County Durham.

The new base features 40,000sq ft of production space and equipment is being installed.

About 300 jobs will be created over the next three years, with recruitment for those posts under way.

Comeleon plans to cash in on the market for interchangeable mobile phone covers. It has signed agreements with leading companies Nokia, Motorola, Siemens and Sendo.

The company has the capacity to manufacture 10,000 a week, a number that is set to rise to 30,000 by September, as more workers are taken on.

Roy Stanley, chief executive of the group, said: "The level of interest within the consumer electronics market for the e-comeleon technology (the process developed by the company) is high, reflected by the significant increase in the level of order inquires.

"We continue to focus on our short-term goal of becoming the imaging partner of choice for the major mobile telephone manufacturers.

"Following quality approval, contract negotiations with several major manufacturers are well in hand."

Such contracts will form the base of e-comeleon's penetration into the replaceable covers market for mobile phones, and the company is working with manufacturers on new products due to be launched into the market over the coming months.

Within the next 18 months, the company plans to cater for a much wider range of products, including electronic organisers and computer peripherals.

The group also aims to establish a technical and service facility in the US during the coming year, in order to take advantage of the significant opportunities in the North American market.

Mr Stanley said: "Having secured a firm sales base, our objective is to become the imaging partner of choice for manufacturers of a wide range of electronic devices, either the big name producers or their injection-moulding suppliers."

In addition, the group is about to sign a licensing agreement that will allow it to use images of popular entertainers and personalities.

Comeleon believes this will enhance the appeal of products in the retail market and help to consolidate the e-comeleon brand.

During the past six months, the board of Comeleon was strengthened by the appointment of two new non-executive directors.

They are Dr John Bridge, chairman of regional development agency One NorthEast, and Steven Bell, managing director of Student Mobiles.

Mr Stanley said: "The business opportunities that are available to us are significant, and the management team is determined to stay focused on the goal of increasing revenues and thus create shareholder value."