The future of a Guiseley IT hardware firm and its 19-strong staff is safe after its directors secured a management buy-out from its struggling US parent.

The £500,000 buy-out of Mercatum was completed only 14 months after the business was purchased by quoted US company MCSi.

The parent firm is now under Chapter 11 bankruptcy rules after suffering a slump in trade since the terrorist attacks on New York.

But Mercatum managing director David White said that, despite the troubles of its parent company, the UK operation had remained "strong and buoyant".

"We have made great strides since Mercatum was acquired by MCSi in June 2002," he said.

"This financial strength, the buoyancy of our current markets, together with an increasing move towards convergence between the IT and audio-visual technology sectors, augers well for the coming financial year."

He predicted that turnover would match sales budgets of more than £7 million.

Nick Russell, of Barclays Bank, which backed the management buy-out, said: "Barclays is pleased to have been able to put in place temporary funding to facilitate the initial cash element of the purchase and will be providing sales financing facilities to meet Mercatum's ongoing needs."