PUB group Local Heroes plans to acquire several sites across the region as turnover is expected to climb to almost £9m.
The Billingham-based company may sell some of the smaller outlets in its estate of 24 pubs, to provide funding for the purchase of larger, more suitable sites.
The firm, which employs more than 250 people, is also using £1m worth of funding from Bank of Scotland Corporate to invest in its existing pubs, which are located across the North-East and Yorkshire.
Commercial director Andy Mullin, from Longnewton, near Stockton, said: "Local Heroes has always been a business about people, rather than brands, and our aim is to develop the business and trade in areas with strong communities.
"We are not looking to play the numbers game, instead we want to develop the quality of the estate, which could mean the disposal of smaller sites to fund the acquisition of other outlets.
"Our aim is to run high quality, profitable pubs, and to continue the steady, sustainable and organic growth of the business."
Local Heroes was established seven years ago by Mr Mullin and Bill Overin, who met while working at Century Inns, in Billingham.
They took the decision to go into business together following Century's takeover by Enterprise Inns, of Solihull, in the West Midlands.
"We asked for several public houses to be added to our redundancy packages and pooled our knowledge and resources to launch Local Heroes," said Mr Mullin.
The group started out with six outlets in the Middlesbrough and Stockton area, but has increased its estate to include pubs in Durham, York, Sunderland and Washington, and this year expects turnover to be between £8.5m and £9m, up from £7.8m last year.
However, Mr Mullin said the group had not escaped the pressures facing the leisure industry.
"It is a difficult time for everyone at the moment with pressures of increased costs and changes in legislation," he said.
"It would be arrogant of me to say we weren't worried about the smoking ban, but our attitude is that we will continue to communicate with customers and make what changes we need to in order to adapt."
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