PUPILS from Framwellgate School, Durham City, have taken an early lead in this year's Future Business Magnates competition.

The contest, in which groups of school children set up competing businesses, with the help of professional mentors, is now in its third year.

With two of the latest competition's six challenges down, Framwellgate School is in front, on 358 points, ahead of Durham Johnston in second place, with 224, and Belmont School Community Arts College in third, with 211.

The Framwellgate team's success is partly down to their tactic of playing their joker - a device which gives teams double points on a challenge, but can only be used once - early in the running.

They are the only team to have played their joker so far.

In taking top spot, the Framwellgate team leapfrogged Park View Community School, from Chester-le-Street, which led after round one.

Last year's winner was Belmont School Community Arts College.

Adam Luke, a member of the Framwellgate School team, explained their business plan: "Our business is all about recycling, and then selling on, cards for all occasions.

"The business, called Beekcards, is already starting to make money and, at the end of the project, we will give some of our profits to a local charity."

Dorothy Creek, a teacher at Framwellgate School, has been involved with Future Business Magnates since its launch.

She said the pupils are becoming more business savvy every year.

She said: "This members of this group, in such a short time, have organised themselves into a functioning company.

"Meetings are held on a regular basis and the business plan was discussed long and hard before being put into place."

The Framwellgate team's business mentor is Durham University's conference and tourism office.

Helen Stangward, from the office, said she was amazed at the team's marketing skills.

"The students have shown real dedication from day one. They often work in their spare time to add more research to the project and have demonstrated a real team feeling from the start."

The nine teams taking part are now focusing on the third challenge, called Our Location. Later, they will consider advertising and finance.

Future Business Magnates is sponsored by The Northern Echo, City of Durham Council, Lafarge and Yorkshire Bank.

Future Business Magnates 2007/ 2008: League Table after Challenge 2

1 Framwellgate *358

2 Durham Johnston 224

3Belmont School 211

4 Durham Federation 201

5 Roseberry 198

6 Hermitage School 197

7 Park View 195

8 St Leonard's 176

9 Durham High School 164

*Played joker so score is doubled