WH Ireland expects to post a pre-tax loss for the last year, after volatile market conditions impacted its capital markets division.
In a statement to the stock exchange this morning (April 3), the wealth manager said it expects to report a loss of £2.2mn for the year to March 2023, below management’s previous expectations.
Revenue is expected to be £26mn, however a lack of transactional activity in the group’s capital markets division contributed to the overall loss.
WH Ireland said despite this it expects the division to benefit from any upturn in the market, due to “cost actions” taken throughout the year.
The group’s wealth management department lost £100mn in assets under management, which dropped to £1.5bn at year-end, with group assets under management declining £200mn to £2.2bn.
Chief executive officer at WH Ireland, Philip Wale, said last year that the group expected to post a small loss for the year, but he was positive about the company’s long-term future.
Wale said despite the challenges he believes the firm is “well placed to take advantage of a market recovery”.
In the group’s results for the first half of the year, WH Ireland reported losses of £2mn, compared to a loss of £887,000 the previous year.
Back in August, the firm’s wealth management boss Michael Bishop told FTAdviser that he continues to aim for a target of £3bn under management in his unit, but that he does not expect to make any acquisitions until the business is profitable.
sally.hickey@ft.com
