CN Creative considers move to boost production

　　David Newns, left, and Chris Lord

　　CN Creative is eyeing a new base in Greater Manchester as it ramps up manufacturing of electronic cigarettes.

　　The firm currently has its research and manufacturing operations at the Bioscience Incubator on Grafton Street, Manchester, and its sales, distribution and accounts teams in Accrington.

　　Co-founder and joint managing director David Newns said CN Creative, which distributes the Intellicig e-cigarette and is developing its own Nicadex product to meet anticipated regulatory requirements in the UK, would look to amalgamate its operations over the next 12 months, probably in the Bury area.

　　CN Creative currently employs 49 staff but expects to double its workforce over the next 18 months.

　　It has entered the 2012 MEN Business of the Year Awards in the category for firms with turnover of under ￡10m.

　　Revenues in the 12 months to last September were ￡1.6m, and are expected to reach ￡2.3m this financial year.

　　The business received a ￡2m investment fillip earlier this year from Advent Life Sciences in return for a 50 per cent stake, and was boosted by the arrival of former Airtours chief executive Tim Byrne as its chief financial officer.

　　Mr Newns and joint MD Chris Lord established CN Creative in September 2008.

　　The duo created the Intellicig brand, and began importing electronic cigarettes to sell online. Soon they were selling 20,000 e-cigarettes to individuals via the web.

　　Today Intellicig is stocked by more than 5,000 retailers and independent pharmacies in 26 countries.

　　The market for electronic cigarettes is currently worth ￡30m in the UK and 500 million dollars in the US. They are aimed at smokers who want to quit or cut down, but still want a nicotine kick.

　　The prospect of e-cigarettes being regulated in the UK means Nicadex could prove a 'game-changer' for CN Creative, the firm's management team believes. A government announcement is expected next spring.

　　The company has so far spent ￡500,000 to develop Nicadex, and clinical trials are being conducted in north Wales.

　　Nicadex is a hand-held battery-powered device which delivers purified nicotine to the user through vapourisation.

　　CN Creative hopes to receive regulatory approval for Nicadex in the next few months.

　　He expects CN Creative to be in the black by the 2014-15 financial year, while Mr Byrne acknowledged that more capital will be required to 'take the business to the next level'.

　　*The MEN Business of the Year Awards will be presented at a gala dinner hosted by broadcaster Nicky Campbell on Wednesday, November 7. The event will be held at Manchester Town Hall. Sponsors are PwC, Pinsent Masons and The Co-operative Bank.

　　From: http://menmedia.co.uk/manchestereveningnews/news/business/enterprise/s/1588659_cn-creative-considers-move-to-boost-production