Brokers look to Midlands in bid for growth

JM Glendinning was established in a back bedroom by John and Joan Glendinning in 1972, and, in recent years, it has grown on the back of regulatory changes and rising client numbers.

Earlier this year, the company which is based in Guiseley, West Yorkshire, opened an office in Newcastle.

Nick Houghton, the managing director of JM Glendinning, said yesterday: “Our sights are set on opening in Birmingham in the second half of the year.”

Initially, the Birmingham operation will have two staff.

It will be slightly smaller than the firm’s Newcastle and Penistone offices, which have four staff each. The Penistone office opened in 2010.

In recent years, JM Glendinning has grown into a group of companies which cover insurance broking, financial services, employment law, health and safety and recruitment.

“The UK’s business world is dominated by SMEs (small and medium-sized enterprise),” said Mr Houghton.

“The world of risk is becoming more complex; lots of brokers are selling at the moment.

“There are around 3,000 brokers like us in the UK. The main drivers (of growth) are older brokers looking to take cash off the table.”

The company’s income from broking has risen from £2m to £2.5m over the last year.

Including the financial services and other businesses, the company’s total income is around £3m.

Mr Houghton added: “Small businesses are focusing on managing costs. We have got a plan and have always looked to the future.

“The big challenge is how we all use technology to meet customer requirements.

“In Newcastle, from a ‘zero start’, the office will just about break even this year.”

John Glendinning handed the reins to his son, Paul in 2005.

In 2007, the business moved its main office from Menston, West Yorkshire, to its current site in nearby Guiseley, to accommodate the growing number of employees.

In 2012 Paul Glendinning brought in Nick Houghton to become managing director of the insurance brokers business.

Mr Houghton was given the job of creating a plan to double the size of the business over the next four years, and then double it again over the next 10 years. Mr Houghton previously ran Broker Network, the UK’s largest network of insurance brokers, which is based in Harrogate.

He also worked as managing director of Countrywide Insurance Management from January 2010 to November 2012.

The company provides financial planning advice to clients.

Its fortunes have been boosted by the implementation of the Retail Distribution Review (RDR), which makes independent financial advisers (IFAs) charge money upfront rather than get commission on products.

It is designed to make things fairer and dissuade IFAs from promoting financial products that pay higher commission.

On its website, JM Glendinning acknowledges that the financial services industry is facing “big changes” as result of the implementation of RDR.

The company said: “We are delighted to confirm that we are RDR ready, and we believe these changes together with new professional standards will herald a far more transparent service for clients, and a move which will recognise financial planning as a true profession.”

Recent appointments have included David Fryer, who has become the company’s client director. Between 2008 and 2012, Mr Fryer was director and head of office at Gallagher Heath in Leeds.

The Guiseley head office has 35 staff, including four people who have been added over the last year.

Altogether, the company has 8,000 policyholders on its system.

In recent years, JM Glendinning has sponsored the Ilkley International Tennis Tournament, which attracted dozens of amateur and professional players from as far afield as New Zealand.

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