Encore Direct plans to invest 1m a year in new kit for the next five years to continue the growth that has made it the 36th fastest-growing company in the UK in The Sunday Times Fast Track 100.

The Yorkshire firm produces 15m envelopes a week for customers including Lloyds TSB, Tesco, and Marks & Spencer. Its sales have grown by 106% a year from 1.3m in 1997 to 11.4m in 2000.

Chief executive Tony Gill said the firm was on course for sales of 14m this year and that it planned to grow to 16m within 12 months.

Encore has spent 7m on equipment since its conception in 1995. Gill said: "Youve got to have the most technically advanced machinery coupled with the most dynamic people."

Encore also plans to add 3,000m2 to its factory, taking it to 7,000m2. Building work should start in January and finish in June.

Gill said Encore was competing with low-cost European competitors, but that it provided a "safer pair of hands" for customers.

Gill invested 4m cash in the business, which he set up after selling another envelope manufacturer. He said Encore was making "reasonable" profits because it didnt have to make hefty monthly repayments on financing for kit.

Syscap, which has a pre-press leasing arm, was at number 32 on the Fast Track 100, while Corpack Industries, which bought MY Corrugated Packaging from in 1999, was at number 18.

Story by Gordon Carson