Old problem

27 October 2003 By Chris Hughes

Old Mutual ‘s sale of its UK stockbrokers to Barclays is the latest retreat. First Rand is reportedly putting Ansbacher up for sale. And Investec’s thirdtier broker buys haven’t delivered the goods. It is hard to make an impact in a foreign market with itsybitsy deals.

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Old Mutual, the South African financial services group, has agreed to sell Gerrard, its UK stockbroking and wealth management arm, to Barclays.

The UK bank is paying £210m in cash for the unit, which had assets under management of £12.5bn at 30 September. Gerrard's revenues were about £100m and its preexceptional, pretax profits about £3m in the last 12 months, Old Mutual said.

Barclays expects to be able to reduce Gerrard's £90m costbase by 20%, with additional revenue synergies on top.

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