An entrepreneur aged just 12 is tasting sweet success thanks to his Scottish grandfather's handmade fudge recipe.

Fraser Bawtree started selling the fudge, using a recipe handed down to him by his late grandfather Nick, from Perth, as a way of raising a few pounds toward a school trip. But after family and friends lapped them up, he decided to set up his own firm, Fudj.

Now, after his first year of trading in which he beat his £10,000 sales target by £3,000, he has taken on a 21-year-old employee to help him grow his business.

He has funded his first overseas fact-finding mission to Shanghai and has been invited by TV chef Jamie Oliver to exhibit at his upcoming Big Feastival.

And although he doesn't pay himself a wage – pouring all profits back into the business – this month Fraser did allow himself one perk: a new bicycle.

Fraser, who is dyslexic, paid a local web designing company in fudge to make his professional online shop, www.frasersfudj.com, which launched last year.

Demand has been so high that he had to find a food factory that could make the sweet to his grandfather's recipe.

Now the schoolboy from Cheltenham, and his new marketing director Sian Hughes, 21, are seeking wholesale distribution deals with supermarkets and garden centres and have set a £30,000 sales target.

The talented youngster has branched out into making gift packages as well as different varieties including rum and raisin, popping candy and chocolate marshmallow.

Fraser said yesterday: "In just a year I have made my hobby into my future. I am very proud that I managed to achieve my goals. It has been a real boost to my confidence.

"It has been a real experience moving from making fudge at home to having it made in a specialist factory.

"People think that having dyslexia is a problem, but look at me now. One day I hope to have my own factory where I can make all sorts of Fudj products.

"Working out costs and profit margins all help me with my maths. Mum helps me with the marketing but I do all the rest."

Father Tim, 41, said the recipe was given to Fraser by his grandfather, Nick, who died six years ago.

Tim said: "It's nice that it's a Scottish recipe because we are a Scottish family. The recipe Fraser uses was given to him by his granddad when he was a small boy.

"From selling it at school it has grown into a proper business.

"When we said he was going to have to earn some money for the school trip I thought it meant my car would get washed.

"That hasn't happened."