Wideblue to raise investment levels

Published on Tuesday 6 January 2009 20:17

WIDEBLUE, the Glasgow-based design and technology consultancy spun out of Polaroid, is to step up its investment activity, taking six-figure stakes in client businesses as it strengthens its links with Scottish universities.

The firm, which reported increased revenues of 1.1 million for the past financial year, said it had seen little change in the volume of business since the start of the credit crunch.

Chief executive Jim Hall, who expects the company to report a further 10 per cent rise in turnover this year, said there was "significant potential" for growth on the investment front.

Wideblue has already taken stakes in two fledgling companies, including spin-out PWB Health, which has developed a hand-held device to help women examine their breasts at home.

The "BreastLight" involves shining powerful LED lighting through the breast to show up any changes, such as lumps that may be cancerous. Wideblue recently collected the "Breakthrough Product Award" at the IDEA 2008 Awards organised by Cranfield University and Eureka magazine for the product.

Hall said: "We have continued to grow steadily with the existing business model, but we are also looking to grow by investing selectively in our clients. Where we see a technology that we can add value and we like the management team then we'll undertake one or two investments a year."

He added: "We will work closely with venture capitalists and business angels on those investments. There is always money available for sound ideas."

Hall said a typical investment would be about 100,000 and Wideblue would look at holding the stake for three to five years.

Established in 2001 as a business unit within the Vale of Leven operation of US imaging giant Polaroid, Wideblue was the subject of a management buy-out in 2006, led by Hall.

The company has a team of 15, including scientists and engineers, who take a product "from concept, feasibility and design to manufacture and marketing".

Hall added: "We continue to see a good stream of clients coming out of the universities, although we are getting involved a bit earlier than we used to.

"Some of that is due to proof-of-concept projects at Scottish Enterprise, and we are becoming more involved at that level."

Wideblue is already working with Heriot-Watt and Robert Gordon universities.

Hall said the firm was also attracting more business from south of the Border.

"Our reputation is growing," he added. "Our photonics expertise has seen us pick up a couple of good contracts down south."