Financial services provider WH Ireland saw its discretionary wealth management business gather assets despite a posting a loss for the overall business.
The private wealth management division increased overall funds under management by 14 per cent to £2.9bn, with the discretionary management business passing £1bn assets under management which provided an income boost from fees.
A slowdown in corporate activity ahead of the UK’s referendum on its membership in the European Union proved to be a drag on revenue for the business. Despite a stronger finish in the second half of the year, the group made an operating loss of £1.3m in 2016 compared to a £1.1m profit the pervious year.
Chairman Tim Steel called 2016 a “transformational” year for WH Ireland after it reached a settlement with the FCA, improved its capital base, and shareholder KEH acquired a quarter stake in the company, and added that he is “cautiously optimistic” for the year ahead.
“Despite the uncertainties regarding the UK's progress towards Brexit and the unpredictability of newly elected President Trump, markets are close to all-time highs, which is a positive environment both for the pipeline in our corporate broking division and for the ad valorem fee paying discretionary mandates in our private wealth management division.”
The wealth manager was fined £1.2m by the FCA following a review in 2013 which found deficiencies in its systems and controls, leaving it potentially open to market abuse.
It was also barred from taking on new clients for 72 days.
Chief executive officer Richard Killingbeck said a £12m increase to recurring revenue, or 47 per cent of total revenue, gives cause for optimism in the coming year.
"The past year has witnessed considerable progress in the repositioning of WH Ireland as an ambitious, focused and modern financial services company. The company is in a strong position to focus upon growing both divisions in the year ahead.”
julia.faurschou@ft.com
