Britain needs to rekindle its 'buccaneering spirit' to invigorate its stock market and the broader economy, according to one of the country's prominent industrialists. Simon Peckham, former chief executive of Melrose, who has a track record of revitalizing industrial firms, urged business leaders to be more aggressive in seeking capital for growth.
Peckham, now investing heavily in the U.S. market through his new venture Rosebank, suggested that the UK government should cease discouraging investors from allocating funds to the London stock market. He warned that an environment characterized by excessive regulation and a preference for safety can lead to diminished investment in British companies.
"The UK needs an outward-going entrepreneurial mindset," Peckham stated, emphasizing the need to encourage entrepreneurship through the tax system. "If people take these risks, there has to be an appropriate trade-off in terms of what they pay in tax." He advocated for a tax system that aims to "make the cake bigger" rather than focusing on "dividing a shrinking cake."
Rosebank, Peckham's new venture, recently announced its first dividend, a little over two years after its listing on the London stock market. The company is now among the largest constituents of the FTSE 250 index and is reportedly aiming for a promotion to the FTSE 100.
Peckham indicated his intention to pursue another acquisition within the next 12 months, with the United States being the most probable location. "We are focusing on investing in the US. We are very happy with our exposure to the U.S. market. Bits of the U.S. economy are coming back nicely," he said.
He cited regulations in Europe and the UK, particularly concerning employment law, as factors that create a shorter turnaround timeline in the U.S. Nevertheless, Peckham affirmed that raising funds in London remains feasible, as demonstrated by Rosebank's success. "We have raised £3bn from the UK stock market in the last 12 to 18 months to deploy into acquisitions," he noted. "If you have the right story, I don’t accept the premise that the funding isn’t there."
Peckham also highlighted a significant decline in pension fund investment in the UK stock market, falling from over 50 percent to approximately 4 percent over the last quarter-century. He urged ministers to "find a way to encourage – or stop discouraging – people to invest in our local domestic market."