Redmayne-Bentley veteran Keith Loudon sees confidence return

THE longest serving and most respected stockbroker in Yorkshire believes that activity and confidence is returning to markets that have been in the doldrums for too long.

Keith Loudon, senior partner at Leeds-based national stockbroker Redmayne-Bentley, celebrates his 80th birthday on Monday and after 57 years with the firm, has seen many ups and downs in the stock market.

“There is increased activity,” said Mr Loudon. “Towards December I thought we would have a very tough three months but things have happened.

“People see that we are going to come out of it and are not looking at a triple or quadruple dip so business for us is really pretty brisk.”

His firm underlined its confidence by completing a deal last week to buy £300m of collapsed rival Fyshe Horton Finney’s assets from its admininstrator.

FHF had 15 offices and Redmayne-Bentley is now in discussions with several of its key stockbrokers joining them.

Mr Loudon believes the deal will be welcomed by the City.

“People have heard of Redmayne-Bentley and we have got a good name in the market in London.” He is immensely proud of its role as the broker for the flotation of Yorkshire grocery chain Wm Morrison in 1967, now Britain’s fourth biggest supermarket group.

He points to the bond issues, led by Provident Financial, that have seen major companies raise money as an alternative to banking finance; two strong flotations from Esure and Directline and now the new tax year as helping stimulate market activity.

“There needs to be something extraordinary happening to get people thinking. Interest has gone out of the market as people have seen the value of their assets fall.”

He said that increased activity is a reason for his firm to contact their thousands of clients served by 30 offices across the UK who are looking for investment opportunities.

“What the banks pay these days is by historic standards, absolutely miniscule.

“We are at the greenshoots stage, history shows that the market does tend to anticipate events and history shows we could be there,” he said.

Mr Loudon has been an outspoken critic of those in the City who abuse their position in the markets and the trust of their clients and he welcomes new financial regulation.

“The FSA were not as focused as they should have been on the big battalions. I say they kicked the cornershops and left the supermarkets alone.

“If we do something wrong it comes out of our pocket – our livelihood and capital is in this place. If someone at a big bank does it then they get the sack but get a big pension.

“There has been no morality, the attitude was that if you can get away with it, do it. I wholly support a Hippocratic oath for the investment industry, one has been put forward by Harvard.”

Mr Loudon says he has no plans to retire and wants to work for at least another 10 years.

“I have always been an optimist about life, if not necessarily about the market. The climate is getting better and coming right. The nearer you get to the grassroots the more cheerful people are and the big City giants are not. This is where the action is,” he said, pointing out of his office window across the Leeds skyline.