Garrington's Eastern promise

Garrington Group, the 'offshore wealth management' specialist tapping Ofex investors for £1 million at 125p a share, is looking for acquisitions and launching a £35 million hedged bond fund. Robert Tyerman reports.

Andrew Barber, the ex-army and Coutts entrepreneur who founded and chairs Garrington, says £2 million of the £3 million the company wants to fund its expansion has already been pledged. Garrington is pitching for the remaining £1 million with its 125p a share Ofex float on Monday.

Pre-tax profits for the first ten months of this year could come out at either £100,000 or £400,000, depending on the timing of one deal. For next year, Garrington envisages pre-tax profits of £1.7 million on turnover of £5.8 million, rising to £4.7 million on £14.4 million turnover for 2003.

Barber and his colleagues see a growing market in advising and managing funds for expatriates and other rich people around the world, in Britain, Europe and especially Hong Kong and the Middle East.

Garrington plans a big expansion of its existing Hong Kong operations, one of the mainstays of the company.

The float proceeds should help Garrington in its search for financial service acquisitions in Hong Kong and elsewhere. The company is setting up a hedged bond fund, called Senator, with a projected initial pot of £35 million, to be managed by ING Barings.

It could be worth a flutter.