The return of cotton nappies to families across the UK has sparked the growth of an award-winning Sussex company.

Cotton Bottoms, based on the Water Lane Industrial Estate, Storrington, plans to create more than 400 jobs by 2005.

The company was founded four years ago when expectant mother Joanne Freer took over a failing nappy laundry service With her sales and marketing skills, she built the business up to a £1.2 million turnover this year and a projected £30 million in the next five years.

Mrs Freer has now secured nearly £0.5m in funding from Bank of Scotland Business Banking to construct a purpose-built laundry at Storrington to cope with a massive increase in domestic business and contracts from NHS maternity units across the country.

The company currently spends approximately £100,000 laundering almost 400 tonnes of nappies each year and it projects a 50 per cent saving in revenue by bringing this service in-house.

All hospitals in West Sussex now use the service.

Joanne came up with the environmentally-friendly concept of a modern Velcro-fastening cotton nappy.

She introduced a home collection laundry service for clients across the south coast, from Kent to Devon, to wash the nappies and return them fresh and clean on a weekly basis.

Mrs Freer said: "I had the idea to start Cotton Bottoms at a time when parents were becoming increasingly switch-ed on to child health issues being linked with disposable nappies and environmentally-friendly baby products.

"Coupled with that, the birth rate was on a steady increase and predictions were it was likely to continue. I spotted a niche business opportunity and decided to develop a product and a concept that didn't cost any more than disposable nappies, was convenient and helped the environment."

The business has doubled in size year-on-year and recently launched a trade and retail wing, developing ethically-manufactured cotton products, such as modern cotton nappies and accessories, including matching sun hats and baby's leather footwear for High Street retailers, such as Boots and independent nursery stores.

Cotton Bottoms has collected many prestigious accolades, including a Government award for best public/ private partnership for its work with NHS Trusts and local government.

Martin Downing, director of new business at Bank of Scotland, said: "Cotton Bottoms is a gem of a business idea. We were happy to back Joanne, based both on the track record of her company and the original way in which she goes about growing her business.

"I'm sure Cotton Bottoms will go from strength to strength and soon become an established household name."

Mrs Freer said parents using cotton nappies for their children will find no allergies, less nappy rash, good postural support and potential for early potty training.

Every baby will use an average of 6,500 nappies in their infancy.

Research shows nappy services use 32 per cent less energy than home washing and 41 per cent less water.