Wealth management and brokerage firm WH Ireland expects to return to profitability in the next financial year, despite a recent fall in assets under management.
The latest half year results statement from the company, released to the stock exchange this morning (November 6), showed assets under management fell by 8 per cent, to £2.3bn, in the period to September, for which the company blamed “market conditions.”
The proportion of assets managed on a discretionary basis at the company sat at 48 per cent, up from 46 per cent in the same period last year.
The drop in the assets of the wealth management business more than offset the growth in the broking business, leaving total net revenue down 11 per cent, at £11.3m.
But costs fell 18 per cent during the period, leading to a drop in net losses to £1.35m, from the £2.14m in the same period last year.
In the year to the end of March 2019, WH Ireland lost over £11m.
At the time the full year loss was announced, the company stated it would need to raise up to £5m to boost its capital adequacy, and comply with FCA rules.
As part of the company’s results statement this morning, it announced it will seek to raise £2.5m, which will be sufficient to boost its adequacy to above the regulatory level.
The company’s chief executive Phillip Wale said: “WH Ireland has made significant progress in the first stage of its recovery, with a clear route to profitability from the start of the new financial year.
"Wealth management has implemented its initial pricing alignment which, together with a continuing robust performance from our corporate business and an ongoing focus on cost, underpins our confidence in a return to profitability."
david.thorpe@ft.com
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