Record label PR file: City Rockers

"Don't get involved with idiots - that would be lesson one," laughs City Rockers founder Phil Howells. "And lesson number two is equally rudimentary: you've got to run your business properly." Howells speaks like a man who's learned his lessons the hard way. "When I first started City Rockers, it was all a bit chaotic," he admits. "Our business plan was to keep one step ahead of financial collapse, which we just about did."

Howells cut his teeth with a job at dance label Hooj Choons. There he helped sign Rio Rhythm Band, which landed him an A&R position at London Records. After nine years, the impetus came to go it alone when London merged with Warners and was no longer interested in working with one of Howells' artists, Felix Da Housecat. "We were sitting on a finished album," remembers Howells. "London had even paid for Laurent Garnier remixes. We had the whole package ready to go, and the acid house thing had started exploding around us, so starting a label seemed the natural thing to do."

Howells left London and City Rockers was born at the beginning of 2001. But he didn't just start the label as a vehicle for Felix Da Housecat. Since his teen clubbing years at Eighties nightspots like Taboo, Howells has derived a buzz from being at the forefront of the dance music scene. The label gave him the opportunity to see that passion through. "One of the founding premises of City Rockers was that everything else was crap - which is a good reason to start something," says Howells. "I was excited by music that no one else was really on at the time."

Howells passion for music began when he first heard Gary Numan's "Are 'Friends' Electric?" as a teen: "Its synth line was the first thing that really blew my mind," he says. "I liked the fact it sounded different and new. That's something I've always kept with me." Howells proved to have a refined radar for the freshest new acts - as shown by the acts he invited to play Bodyrockers, his label's affiliated club night.

DFA's James Murphy and the Audio Bullys were among those who graced the Bodyrockers stage long before their names tripped off the tongues of trendsetters. Howells was also the first to bring the Scissor Sisters to the UK. Unfortunately, the band didn't manage to play their set as their equipment failed for the show. "It was a very bad moment," says Howells. "They said: 'Hi, we're the Scissor Sisters,' and then nothing. Apparently someone had opened a fridge which overpowered the venue's electricity."

Howells could clearly spot hot new bands, but although he released the Futurism series of cutting-edge compilations, he lacked the funds to sign acts to City Rockers. In 2002, a dream deal with Ministry Of Sound to make City Rockers an imprint of the club-land giant promised to solve Howells' dilemma. The financial backing would allow City Rockers to seal deals they'd agreed with acts including Scissor Sisters. But, at the last moment, the tie-up fell through. Howells believes it was because of the disorganised structure of his label. Disappointed and skint, he put the label into hibernation.

But the pull of the label proved too strong and Howells resurrected City Rockers at the end of 2004. Bitten by his Ministry experience, he decided that if the label failed again, it wouldn't be down to a lack of organisation. So he invited his old school friend - and former head of business affairs for EMI Europe - Charlie Lexton on board. With Howells focusing on A&R and Lexton overseeing the day-to-day running of the business, City Rockers mark II is brimming with promise and burning with ambition: "We're sharper now," says Howells. "We're here to compete."

Although fiercely independent in outlook, City Rockers now positions itself somewhere between the indies and the majors. When they find an act they like, they sign them and, while retaining artistic control, secure the major label funding that Howells believes is crucial. As he sees it, City Rockers acts get the best of both worlds. "Our ethos is to be able to provide the attention, the care, the passion that you expect from an independent and the resources, the international support and the financial might you want if you go to a major. And with the two things together we can actually guarantee more."

"The things that we promise will happen because we're in charge," continues Lexton. "There's a very short chain of command. And because we're limited to the number of bands we can afford to sign, we have to make them work."

These days City Rockers don't just release dance music. In fact, the label currently has just two signings that have released albums, The Sunshine Underground and The Blood Arm, and both are guitar-based acts. It's quality they look for, rather than genre. "We look for bands that have big songs," says Howells.

But with just three acts on their roster (they've recently signed The Ghost Frequency) they're careful not to spread themselves too thin. "There's a limit to what we can do right now," says Howells. However, the label is ambitious. They're nurturing a management arm and looking into establishing a publishing company. "If our bands succeed, we grow," says Howells with the same customary zeal that still drives his label. "I hate listening to a band I like and not being able to work with them. But the more successful we become the greater chance I'll have to work with the bands I want to. And the best bit about my job is that somewhere, someplace, someone's creating something new that's going to be massive. It's our job to make sure we get hold of it."

History of the label

Introduction: Originally a home for dance, this forward-thinking label is now establishing itself as an independent alternative to major labels for both guitar- and beats-driven acts.

History: Veteran of the late Eighties/early Nineties club scene, former London Records A&R Phil Howells (pictured above) set up City Rockers to release Felix Da Housecat's Kittenz And Thee Glitz album. Although the label later signed guitar bands such as The Warlocks and The Duke Spirit, it was predominantly known for dance acts including FC Kahuna and Tiga, and Futurisum compilations. In 2002 a lack of funding and a botched deal with Ministry Of Sound forced Howells to close the label. Two years later Howells resurrected City Rockers.

What they say: "The first day I walked into London records I was taught to listen for a hit and look for a star. And now at City Rockers that's still what I'm after. We don't have the same sort of money as the majors but we work in the same arena. It's very competitive." City Rockers co-owner Phil Howells.

Notable acts currently include: The Blood Arm, The Sunshine Underground.

Top Tips 2006/2007: The Ghost Frequency.

Pub fact: In 2002, Howells had enough money to release either The Warlocks' album or the Scissor Sisters' "Comfortably Numb" single. He opted to put out The Warlocks record. He now admits he may have made the wrong decision.