Stockbroker and wealth manager WH Ireland warns of £2.2million loss
Stockbroker and wealth manager WH Ireland warns of £2.2m loss as it misses forecasts amid market volatility
- The company reports pre-tax losses of “over” £2.2m for the full year ended last week
- It blamed a persistent “lack of transactional activity in the capital markets”.
Stockbroker and wealth manager WH Ireland has warned it could slide into a loss after trading underperformed in the second half of the year amid stock market volatility.
The London-based firm said the lack of transactional activity in capital markets in 2022 continued into 2023, affecting its capital markets division.
It is now expected to post a pre-tax loss of “over” £2.2million on earnings of around £26million for the year ended last week.
WH Ireland said a lack of transactional activity in capital markets continued in 2022 into 2023
This compares to a pre-tax profit of just £8,000 and revenue of £32m last year.
However, WH Ireland said its capital markets department has “the potential to capitalize on any upturn in the market as it happens” thanks to recent cost-cutting efforts.
The number of customers remained stable compared to the previous year with 88 corporate customers.
The wealth management division fared better, although assets under management were also slightly lower at £1.5bn at the end of March compared to £1.6bn a year earlier.
“The wealth management division has remained resilient and delivered underlying profitability over the past six months,” the group added.
The group’s total assets under management stood at £2.2bn at the end of March, up from £2.4bn a year earlier.
“The company had cash on hand of £4m at the period end before quarterly recurring cash from the company’s platform providers (expected to be at least £2.5m) falling due immediately,” it told investors.
WH Ireland shares were down 3 percent at 18.43 pence in afternoon trade on Monday. They have fallen by more than a fifth since the beginning of the year.
https://www.dailymail.co.uk/money/markets/article-11933323/Stockbroker-wealth-manager-WH-Ireland-warns-2-2m-loss.html?ns_mchannel=rss&ns_campaign=1490&ito=1490 Stockbroker and wealth manager WH Ireland warns of £2.2million loss