Youngsters from Helenswood School in Hastings have won a competition for student businesses.

It is only the second time the competition has been won by a team from a state school.

Simply Stars beat teams from 60 schools across Sussex to win the Seeboard Energy young enterprise award for best company at the county finals, hosted by presenter Danny Pyke, of Southern FM.

The budding entrepreneurs won a shield and £100 for their school, a prize donated by the Sussex Branch of the Institute of Directors.

Young Enterprise was set up in 1983 to educate young people to understand and value the role of business in society by running their own companies.

Students establish and run their own companies at their schools. They raise capital by selling shares, elect directors and identify, design and sell their own products.

The 12 members of Simply Stars made stressballs and keyrings which they promoted through the school newsletter and posters.

They raised £175 in capital for materials by selling shares to friends, families and teachers. Aiming their products at 11 to 16-year-old girls, they made a net profit of £225.

Chairman of the judges Richard Bianco, of the South-East England Development Agency, said: "Simply Stars developed a simple but versatile product. They had well-presented accounts and a flat structure which many companies try to achieve but often fail."

Runners-up, and winner of £75 donated by The Argus, were The Mad Ferrits, from Brighton and Hove School for Girls. They also took the best product award, gaining a further £100 for their school, a prize sponsored by Spirent.

They hand-embroidered duvet covers and pillowcases and a range of strappy vest-tops for girls, selling their products as far afield as Switzerland to make a profit of £381.

This allowed them to pay their shareholders a 20 per cent dividend on their investment.

Mr Bianco said: "It is vital that companies spend time conducting market research before launching their products and organising their finances. Marketing and public relations are equally important.

"The Mad Ferrit had a strong product from a team which understood its market very well."

Peter Hofman, managing director of Crawley-based Seeboard, was one of the judges. He said more than 800 students have been involved this year.

He said: "Seeboard Energy is delighted to be associated with this event. Many of these students will have gained enormously from the experience."

The team from Helenswood School goes on to represent Sussex in the regional final.