STORAGE system manufacturer Rackline has won contracts worth more than £7 million this year.

The Newcastle firm designs and makes office, archive and industrial storage systems and it has agreed deals with customers including Marks and Spencer , Somerset Heritage Centre, Great Ormond Street Hospital, Reading University and Aberdeen University.

Rackline directors say the surge in demand is partly down to Government cuts forcing public sector organisations to change the way they work.

Commercial director Tracy Goodwin, pictured above, said: "Departments are amalgamating and they are cutting down on the buildings they are using, but they still need to store the same amount of documentation.

"Our systems can increase storage capacity by 70 per cent, so we are benefiting.

"We are also benefiting from a lot of publicity about buying British, and we are promoting that side of things quite heavily."

Ten new production staff have been taken on as a result of the surge in demand, and an extra shift has been introduced at the Oaktree Lane, Talke, factory.

Rackline managing director Lindsay Khan said: "We've had a fantastic start to 2011 and all indications show that this should continue for the second half of the year.

"We design and manufacture all our products at our site in Talke and we're delighted that so many of our customers are realising the benefits of buying British and helping to support the local and national economy at the same time."

Rackline's turnover is £8 million, but that is likely to hit a record £10 million in 2012.

At the moment, the vast majority of sales are to UK customers, but the business is working with export agency UK Trade & Investment to expand internationally and it has attended an exhibition in Dubai.

Rackline was established in 1984, and it designs and makes storage solutions to meet the filing and archive needs of libraries, museums, universities and colleges, hospitals, professional services firms and large retail and commercial head offices. It employs 60 people.

Public sector customers include GCHQ, the DVLA and the Department for Transport.

How is your business being affected by the public sector spending cuts? Email us at businessdesk@thesentinel.co.uk