Garbutt’s new China desk to promote trade

Garbutt & Elliott has offices in York and Leeds and is a member of Praxity, a global alliance of independent accountancy firms.

Its partners are of the opinion that there is a “tremendous” opportunity for corporate finance work with Chinese companies investing in Britain and the rest of the Europe. Many Yorkshire exporters are planning to do business with China.

David Dickson, senior partner at Garbutt & Elliott, said that, over time, outward investment will become more important to the Chinese private sector and their larger family businesses.

He said: “We believe that the establishment of our China desk makes us particularly well-placed to assist these companies with their investments in the UK, as well as to help Chinese nationals already based here who are looking at acquiring companies in targeted sectors.”

The firm’s China desk was established in May with the help of two interns from York University, Xu Wang and Jingwen Feng. The aim is to provide a one-stop shop to Chinese businesses considering investment in the UK. The interns – who are paid for their time – have developed a web page, video and presentation in Mandarin, all of which are accessible to the Chinese market.

Mr Dickson said: “We wanted to increase our ability to speak in Mandarin. So we brought in speakers [of the language]. But you have got to understand the culture first, that’s a very basic thing.”

Mr Dickson is one of nine partners at Garbutt & Elliott. He has recently returned from a four-day mini-summit in Beijing, organised by Praxity.

This event introduced international members of the organisation to two firms of Chinese accountants, Shine Wing and Mazars, as well as to a number of clients.

While he was in China, Mr Dickson screened a previously-recorded presentation of him speaking in Mandarin, as well as giving the Chinese delegates a video of the culture and history of Yorkshire which was originally produced by the City of York Council to celebrate the 800th receiving the Royal Charter.

While Garbutt & Elliott doesn’t stretch back as far as the City of York, the firm was founded some time ago back in the 1880s.

Today the company employs more than 100 people. In addition to accountancy and auditing, Garbutt & Elliott also has in-house teams specialising in tax, corporate finance, access to finance and payroll.

Mr Dickson describes the business as “a regional firm that is part of an international organisation”. The expansion into the Chinese market makes sense, he said.

Last year China invested about $80bn abroad, a substantial increase on the 2000 figure of $16bn.

Of the 2013 overseas investment, $25bn came to Europe of which $8bn was invested in the UK.

Some financial experts believe that recent changes in the Chinese government’s outlook could also significantly increase outward investment, given increased domestic labour costs and the need for firms to acquire world-class technology.

At present, China is the second largest economy in the world but is predicted to overtake the United States within the next five to seven years.

Mr Dickson said: “The potential for Chinese investment in the UK has never been greater and companies, including family-controlled businesses, are looking at linking up with trusted advisers.

“A number of businesses are looking at the UK for the first time and, having previously acquired quoted companies, are now looking at private companies within specific industry sectors.”

Garbutt & Elliott plans to continue recruiting Chinese specialists, including more interns from universities based in York- shire.

“We are now getting Chinese qualified accountants wanting to have a chat with us about coming to work for us,” Mr Dickson said.

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