AN old weaving mill in the heart of the picturesque village of Fence is the unlikely setting for a company that furnishes some of the world's finest hotels and cruise ships.

The list of exclusive hotels that feature fabrics designed and manufactured by Panaz in Pendle includes the Ritz and the Waldorf in London, George V in Paris and the Atlantis Resort and Casino in the Bahamas.

The company also furnishes luxury cruise ships for major operators such as Cunard and Carnival and also supplies hospitals and universities.

Its biggest contract last year was to furnish World Residences - the world's biggest and most exclusive liner afloat.

Over the past two years, Panaz has doubled its sales in both the UK and overseas markets and turnover has broken through the £10million barrier for the first time.

So, at a time when there is little left of the UK's once-proud textile industry, how does a small business in the shadow of Pendle Hill manage to shine on the global stage?

Tony Attard, who founded the business in 1986, has no doubt that superior design quality has been the key to the company's success.

"We invest up to £400,000 a year in new design and we bring out between five and six new collections every year," he said. "We have always been very design orientated and that is what keeps us ahead of the game."

Panaz has concentrated on the niche market of flame retardant fabrics for bedspreads, upholstery and drapes which are essential for the leisure and hospitality industry.

"I started out in 1986 with just a telephone, but I had a clear idea of what I wanted to do," said Tony. "At that time, flame retardant fabrics were horrible with little or no attempt to introduce design into the product.

"I wanted to create attractive fabrics for room interiors which were functional, practical and aesthetically pleasing."

Technical excellence allied to design flair have been the foundations on which the company has been built.

"Investment in new ideas, technologies and products is essential if long-term growth is to be assured," he said.

"It is important for British manufacturing to realise that business levels will not be sustained, let alone grow, if you rely on old ideas or products. I am sure that crucial to Panaz's success is our enormous empathy with customers and our understanding of market needs. This means we are swift to both intercept and interpret changes in trends and buying patterns. Then, we can focus our own approach accordingly."

Born in Bournemouth, Tony moved to East Lancashire after graduating from Manchester University.

Panaz started in nearby Higham and won its first award from the Design Council in 1988 which helped establish its reputation.

The company moved to Fence in the early 1990s when it bought a redundant weaving mill which dates back to 1850.

Spring Mill remains head office, its address sitting somewhat incongruously alongside its American base at Laguna Beach, California.

Around 60 per cent of the fabric sold by Panaz is manufactured by its 55-strong workforce at Fence, with the remainder being sourced from companies throughout the world.

Export sales account for around 30 per cent of production and, in addition to its American arm, the company has associate businesses in France and Germany and a distribution network covering 36 countries.

Underpinning everything, however, is design. Tony is both managing and design director and relishes the twin responsibilities.

"We have a very strong design team here, but I still have a a very close handle on the design side of the business," he added. "I would hate just being involved in the business side of things. You could lose sight of your ideals if you concentrate too closely on the money side of it."