A Cwmbran recruitment firm has achieved unprecedented growth despite undergoing a major legal challenge which reportedly threatened the business.

Thomas Recruitment has quadrupled in size over four years, and is reporting a turnover of £14m.

The Victoria Street business, which also operates from Cardiff, Swansea, Merthyr, Tredegar and Pontypridd, is projecting a further increase of 40 per cent by the end of the year.

Established in 2007, the company, formally known as Paramount, was forced to rebrand in 2012 after receiving legal threats from a Midlands-based company of the same name.

Business owner Jason Thomas said the battle was a very challenging time for his growing company, which was turning over £3.5m at the time:

He said: “I established my business with a vision to be the leading recruitment company in Wales, and for the last decade we have been highly successful as our growth figures show. However, we experienced a difficult period in 2012 when we received a letter threatening us with legal action.

“It was a complete shock because I thought we’d undergone all the legalities needed to set up a business, including registering at Companies House. It was only when we expanded into England that we realised there was another business of the same name.”

After receiving the letter, Mr Thomas sought advice from Cardiff solicitors, Hugh James, and subsequently changed the company name to Thomas Recruitment to avoid injunctions, damages and significant costs.

He said: “I explored various options with my solicitor, and rebranding was the right route. It cost in the region of £35,000 to change our marketing, brochures and website. However, I didn’t want to lose my business.”

Mr Thomas says although it was difficult, the rebrand strengthened his company.

He said: “Since changing our name, our team has worked really hard to establish the new brand. We’ve grown considerably, and everybody has seen it as a fresh start. However, I now know how important it is to protect a brand, from the name to company colours. I can see how, without the right advice, a threat can make or break a business.”

After securing major contracts across the manufacturing, logistics and engineering sectors, the company will open its first English base in Birmingham, and staff numbers are expected to grow from 35 to 50.

Richard Locke, head of dispute resolution and partner at Hugh James, said: “Intellectual Property protection seeks to safeguard vital business assets such as logos, branding, designs and inventions. Cases like Mr Thomas’s are unfortunately very common and can be time consuming and costly.”