Argonaut Ltd is undergoing an aggressive expansion that will see staff numbers swell by about 50 per cent in the next 12 months as its founders look to cement the company’s position in Perth’s investment community.
Argonaut Ltd is undergoing an aggressive expansion that will see staff numbers swell by about 50 per cent in the next 12 months as its founders, Eddie Rigg and Charles Fear, look to cement the company’s position in Perth’s investment community following five years of solid growth.
Mr Rigg said he wanted to increase staff numbers by 16 to reach 50 across the firm’s stockbroking, funds management and corporate advisory divisions.
Meanwhile, rival stockbroking firm DJ Carmichael & Co is also in expansion mode after opening an office in Melbourne four months ago.
DJ Carmichael managing director Rod Beeton said he was looking to recruit an additional seven stockbrokers to join its team of three at the Melbourne office.
Its national expansion coincides with the release of “golden-handcuffs” placed on several of the stockbroker’s key executives as part of a deal to sell a controlling stake in the business to UK broker WH Ireland for $2.9 million two years ago.
Ian Dorrington, Derek Steinepreis, Andrew French, Michael Munro and Paul Covich were restricted from leaving the firm until June 30 this year.
It’s a buoyant time in the stockbroking industry with several brokers taking up opportunities at rival firms.
Indian Ocean Capital has recruited four dealers including Citigroup dealers Colin Hebbard and Robert Catena and former Montagu Stockbrokers dealer Rohan Edmondson.
DJ Carmichael & Co dealer Steven Loxley has joined Hartleys.
Despite the competitive marketplace, Mr Rigg is confident his firm can attract the right people to fuel its growth plans.
He said he was already in discussions with a number of experienced advisers in Perth and hoped to recruit least another five stockbrokers by June 30 2008.
“I would be very disappointed if we didn’t have another three people join the broking operation in the next three months,’ Mr Rigg said.
In about the past six months, Argonaut’s broking division has grown to seven people following the recruitment of three former Patersons Securities dealers Ben Willoughby, Glen Colgan and Geoff Barnesby-Johnson.
Kevin Johnson left Grange Securities to join Argonaut’s broking desk in November and also took a 5 per cent stake in the investment bank.
Argonaut’s corporate advisory team will be bolstered with Prime Corporate Finance associate director Kim Russell joining in mid-July, while former Futuris executive Jon Biesse joined the team a couple of months ago.
Mr Rigg said the company’s performance had attracted about three or four unsolicited takeover and partnership approaches.
But he has ruled out a sale of the business or a potential stock market float in the next 12 to 24 months.
“The firm is not for sale…we have too much growth to do and we’re doing it pretty well,” Mr Rigg said.
