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Development costs hit returns at WH Ireland

Development costs hit returns at WH Ireland

The cost of growing and developing its private wealth management division were greater than expected for WH Ireland last year, impacting the company’s results.

Discretionary assets under management (AUM) at WH Ireland grew by 10 per cent to £1.125bn in the year to 30 November 2017.

The growth in the DFM side of the business contributed to a 12.3 per cent rise in total group revenue to £28.6m for the year.

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Operating profit was £400,000.

In his statement accompanying the results, chief executive Richard Killingbeck said the development of its new platform had taken longer, and proved more costly, than expected, but were now resolved.

He said the company now intends to launch a model portfolio service for clients.

The biggest contributor to revenue growth was a 32 per cent increase in revenue from the corporate and institutional broking division, which generated £10m.

Mr Killingbeck said: "The reorganisation of last year resulted in exceptional costs being incurred primarily within the private wealth management division.

"These costs will fall away during 2018 and when combined with further cost reduction initiatives and specific organisational change, confidence builds as to the future profitability profile of not just the private wealth management division but also the group."

david.thorpe@ft.com