Wealth of opportunity as company boosts turnover despite recession

A Yorkshire wealth management firm has expanded despite the recession with the backing of the man who led the lucrative flotation of Leeds stockbroker Rensburg.

Robertson Baxter Financial Services has built turnover to nearly 500,000 in just three years with a business model of outsourcing investment management to so-called discretionary fund managers, who have the authority to take make quick decisions for clients.

The Huddersfield-based firm is chaired by Michael Woodhead, who owned half of BWD Securities before it floated in 1989. It bought Rensburg a year later and went on to become Rensburg Sheppards.

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Last month RS agreed its sale to Anglo-South African investment bank Investec, a move which would end more than 170 years of independence in a deal valuing it at 412m.

Now Mr Woodhead's new interest has grown on the back of work for entrepreneurs, owner-managers, managing directors and the bosses of family firms, as well as retired people and young directors in West Yorkshire and Harrogate. It has 110 clients with 50m of funds under management and is on course to increase turnover from 320,000 last year to 475,000 for 2009-10.

Stephen Baxter, a director of Robertson Baxter, said: "The environment over the last 12 months has been very good for investors. The 18 months of recession have been very good for us because people have been parting from their existing advisers. They have been frustrated by the service and the delays and the investment performance."

Mr Woodhead became involved after being a client of Greg Robertson when he was an independent financial adviser. He offered to be a mentor when Mr Robertson was setting up the business and now the firm counts some of Mr Woodhead's family and business contacts as some of its clients.

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Mr Baxter said: "Michael is not an adviser (on individual investments] but is involved in some of the strategic decisions. He is involved on a daily basis on a level that I didn't think he would be."

The firm works with discretionary fund managers, such as Cazenove, which can take instant investment decisions for clients, who have an average of 500,000 to spend.

Mr Baxter said: "We would like to continue the success we have worked with in the professional community. A number of our clients come from introductions from lawyers and clients. We do a lot of work with the professional community.

Robertson Baxter aims to grow at the same rate in 2010-11 but Mr Baxter said they will not seek to be as big as Rensburg. They will, however, seek to increase the number of back office staff to support the advisers.

THE MAN WHO BUILT A MAJOR STOCKBROKER

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Michael Woodhead helped build BWD, later Rensburg, into one of the North's major stockbrokers.

In 1979, BWD had eight staff and one office. Ten years later, it floated with 270 staff, eight offices and nearly 1bn of funds under management.

Mr Woodhead stepped down from running the firm in 1989 because of a suspected heart attack.

He remained involved with the company for several years, however, as he ran down his shareholding while working in non-executive roles elsewhere, such as at housebuilder Tay Homes, which was bought by rival Redrow.

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In 2005, Rensburg bought Carr Sheppards Crosthwaite, three names which could trace their roots back to the 19th century, and it became Rensburg Sheppards.

Last month, Investec, which was the largest shareholder in Rensburg, moved to buy the rest of it in a deal recommended by the company.

An outright takeover had been on the cards for several years.

Today, Mr Woodhead is a lay council member of the University of Huddersfield.

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