Wealth management firm WH Ireland has reported a full-year loss of £0.3m after being hit by a hefty fine from the Financial Conduct Authority.
The firm reported a loss of £0.3m, against 2014’s profit before tax of £0.5m, according to its full-year results ending 30 November 2015.
The wealth manager was fined £1.2m following a review in 2013 by the regulator which found deficiencies in its systems and controls, leaving it potentially open to market abuse.
The firm reached a settlement with the FCA last week.
It was also barred from taking on new clients for 72 days.
In its results published today, the firm’s chairman Tim Steel said reporting this “transgression” to shareholders was “uncomfortable”, adding it was his “firm belief that a settlement of this issue is in the best long term interest of shareholders and staff.”
Since that review, Mr Steel said WH Ireland has revamped every aspect of its business and has focused its efforts on accelerating change at the company.
Before the fine, operating profit totalled £1.1m, an increase from 2014’s figure of £0.7m.
Group turnover increased by 3 per cent to £30.9m in 2015, from £30m the previous year.
Assets under management for its private wealth management business increased by 2 per cent to £2.48bn, from 2014’s figure of £2.47bn.
Richard Killingbeck, chief executive of WH Ireland, said he was broadly positive about the results.
He said: “Many of the structural changes at the company to which I have referred in the past have begun to improve the 2015 financial performance of WH Ireland.
“We still have a lot more to do, but these are encouraging figures.” Richard Killingbeck“We still have a lot more to do, but these are encouraging figures.”
Speaking to FTAdviser, Mr Killingbeck said the firm can now focus on moving forward: “I’m pleased to put those issues behind us because it’s been hanging over the company for far too long now.
“We are starting to tell the story that change is happening, and that we are much more focused on management fees and recurring fees than we have been.”
He said the firm has turned its attention to improving efficiency around its operations, corporate structure and remuneration.
“Senior management team is much better spent on driving the business rather than looking in a rearview mirror.”
katherine.denham@ft.com
