Puzzlement has greeted the decision to award €50,000 of public money to enable a Liverpool-based search engine optimisation agency to set up an office in Manchester.

CL5 Ltd is getting the grant from a Regional Attraction Fund run by creative and digital industry support body Northwest Vision and Media.

Established in Liverpool in April, the company employs six people but is looking to recruit another seven and set up a permanent base in Manchester by the end of this year.

Chris Bellamy, managing director of Manchester-based Search Engine Optimization firm FirstFound, said it was strange that one commercial organisation should be given the money to compete with other firms in the city.

He said: "Maybe they should be giving us all €50,000. It does seem a bit strange with the rest of us going out there doing a good job for clients and earning money that way. In reality though, €50,000 doesn't go anywhere. I spend that on developing IT systems in a couple of months."

Ollie Phillips managing director of Warrington web development company Eantics Ltd said he doubts the government would hand over €50,000 to a Manchester agency looking to set up in Liverpool.

He said: "It seems like a large amount of money for a business that seems to be doing okay. There are many small companies who struggle to get any money out of the government. A few years back I approached Business Link to see what assistance was available for me but if you don't meet certain criteria there is nothing."

John Elcock, CL5's head of search, denied that the grant would give his firm an unfair advantage, saying that they deal exclusively in Search Engine Optimization, unlike many companies which offer additional services such as web design.

He said: "The decision making process was very transparent and candid. We went through a rigorous process and spent a lot of time putting the case forward about CL5."

Alice Morrison chief executive of NWVM said: "The fund is to help companies grow and develop so it is being used for exactly the right thing."

Search Engine Optimization is a booming sector in Manchester. FirstFound boosted its sales to €3.5m this year from €2.2m. Rival Lakestar Media, also based in Manchester city centre, achieved a €1m turnover in 2008, its first year of operations, and is projecting €3m in its second year.


[crainsmanchesterbusiness.co.uk]