A DERELICT outbuilding which was transformed into a gift shop has proved a hit in North Yorkshire.

Jan Bradshaw spent £30,000 turning a disused cart house in her mother-in-law's garden in the Ryedale village of Nunnington, into a thriving business. At first she had considered turning the building into a holiday home, but then she realised there was a gap in the market for a shop selling high- quality handmade gifts produced by local craftspeople - and Agnus & Co was born.

The shop opened in May and has gone down well with both residents and tourists.

"It's doing really well. I have got a lot of customers from word-of-mouth recommendations as well as visitors passing through the area," she said.

"I expect once the school holidays start, we will be even busier."

Now Jan is hoping to achieve success by winning the title of New Business of the Year in this year's Evening Press Business Awards.

The shop sells a range of products including jewellery, lamps, scarves, ironwork and cards. All her stationery features a picture of a lamb in recognition of the shop's name, which means lamb in Latin.

Updated: 09:44 Monday, June 28, 2004