SMALL is not only beautiful - and profitable - it is also likely to restore the fortunes of award-winning BSC Filters, of Osbaldwick.

The firm, which won the 1998 Evening Press Business Venture of the Year, as well as Exporter of the Year, has applied for DTI funding for a £65,000 feasibility study to miniaturise and make more efficient its microwave components for commercial and military communications systems.

The company, which is being helped in its efforts by Business Link North Yorkshire has already spent three-and-a-half years on its last development project funded by a DTO SPUR award.

That generated orders worth £1.5 million and has helped the company to fight back in the telecommunications sector where a slump meant cutting production from three shifts to two and reducing staff levels from 60 to 35.

BSC Filters is regarded as a global market leader in waveguide deplexer filter technology. The company designs and manufactures filters for mobile telephone systems, satellite communications and remote TV broadcasts, supplies global operations including Nokia, Marconi, British Aerospace, Nortel and Nera.

Alan Corlett, managing director, said: "We've been hit by the downturn, but we are still strong and weathering the situation.

"The industry will pick up generally and spurred by the production of these new developments we will be able to break into new and bigger markets."

Technical director, Stephen Chandler, says: "Miniaturisation is extremely important to our industry and we hope we will be successful in gaining the award which will help us stay at the forefront of our industry.

"Work as a result of the SPUR award was converted into profits which benefited the local economy and we hope to repeat this if we get the necessary assistance for the new study.

"Business Link North Yorkshire is very experienced in advising on SMART award applications and is being extremely helpful with our case."

Business Link North Yorkshire innovation and technology advisor, Roger Benson, said: "Work as a result of the last award was converted into real revenue and profits which is an excellent result.

"The proposed new study is a smaller spin-off, but the growth of such an innovative company will always be based on developing new value-added products."