Consolidation - £165m firm on horizon.
Jobtel, the broker behind moves to create a new accounting and business services brand, said this week it is on track to launch a new consolidated firm in April and predicted it will attract £160m in fee income within five years. This would put the new player just behind the Big Five according to the 1999 Accountancy Age Top 50. Jeremy Kitchen, Jobtel’s associate director, said it is seeking a further £16m to £20m in funding, but said it is already well past the critical mass needed to launch. The company has held talks with firms in the £3m to £16m fee income bracket and claims strong interest from two Group A firms. It aims to provide a core accountancy business and other services, such as executive search, not otherwise available to clients outside the Big Five. Jobtel expects senior partners from the so-called foundation firms will play a role in appointing a chief executive officer. The company advertised for a CEO in December. Jobtel faces competition in the consolidation race from stockbroker Raphael Zorn Hemsley, which aims to float a new £50m entity next month. RZH is aiming for a fee income of £100m shortly after launch. If both are successful, the mid-tier, which already attracts over £1bn in fees, will be completely re-drawn.