York’s Damson Audio triples growth after global success

A York-based consumer audio technology business has tripled its growth due to strong exports sales of its innovate products and a £300k trade finance agreement with Creative Capital.

Damson Audio designs and supplies a range of high-spec portable wireless speakers and headphones, which are stocked by domestic retailers such as Tesco, Maplin and Selfridges, and in the international market by the likes of Walmart-owned Sam’s Club and Apple re-sellers.

Established in 2012, the company has increased its turnover by 300% to £1.8m in the year ending 31 March 2015 and predicts revenues will double again over the next 12 months.

Half of the business’ sales are generated in the UK and the other half in the US market.

A unique six-strong product range, which includes the recently launched ‘Headbones’ headphones, is the driving force behind Damson Audio’s rapid growth.

As an alternative to amplifying sounds into the ear canal, Headbones transmit sound to the inner ear via vibrations transferred through the temporal bone. This allows the ear to hear peripheral sounds, making it ideal for use in sports, and in situations where standard headphones can pose a safety risk.

To fund the first production run of Headbones, Damson Audio secured a short-term, £300k trade finance facility from independent alternative lender Creative Capital.

By loaning against the value of the finished goods, the funding package advanced the working capital needed to manufacture the product in China and transport the shipment to the UK for distribution to retailers and customers.

This marks the third occasion Damson Audio has used alternative lending to fund expansion.

The business, which won UK Trade & Investment’s (UKTI) Tech Start-up of the Year award in 2012, employs a team of four designers and engineers and plans to target further opportunities in the multi-billion wearables market.

James Talbot, founder and managing director of Damson Audio, said: “Through innovative product design we’ve been able to tap into rapidly growing demand for high-quality wireless technology that’s being driven by major global brands such as Beats by Dre, Fitbit and Apple.

“Securing the capital needed to support this rate and scale of expansion when you’re a young SME can be a challenge, but we’ve had great success harnessing various sources of alternative funding.

“Creative Capital’s trade finance facility was exactly what we needed at this stage to maintain momentum, as it quickly provided the sizable working capital boost needed to get our revolutionary Headbones product to market.”

Keith Bolton, director of trade finance at Creative Capital, added: “James and the team are a real UK exporting success story with innovative products that either outperform the competition, or stand alone in the global market.

“Trade finance is an ideal instrument for smaller businesses to fund transformative growth opportunities without putting additional strain on their cash flow or sacrificing valuable equity.

“Many traditional lenders don’t offer this type of funding to SMEs on a one-off basis as it’s often seen as not worth the resource required to structure the appropriate facility for a smaller customer.”

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