Stockbroker and wealth manager WH Ireland has warned it will slump to a loss after trading came in below expectations in its second half amid stock market volatility.
The London-based company said the lack of transactional activity across capital markets throughout 2022 has continued into 2023, affecting its capital markets division.
It now expects to report pre-tax losses ‘in excess’ of £2.2million for the financial year that ended last week, with revenues of about £26million.
WH Ireland said that a lack of transactional activity across capital markets throughout 2022 has continued into 2023
That compares to a pre-tax profit of just £8,000 and revenues of £32million the previous year.
However, WH Ireland said its capital market division had ‘the potential to exploit any upturn in the market when it occurs’ thanks to recent cost cutting efforts.
It also said that customer numbers have remained stable compared to last year, with 88 retained corporate clients.
Its wealth management division fared better, though assets under management were also slightly lower at £1.5billion at the end of March, from £1.6billion a year before.
‘The wealth management division has remained resilient and achieved underlying profitability in the last six months,’ the group added.
Total group assets under management were £2.2billion at the end of March, down from £2.4billion the previous year.
‘The company had cash at the period end of £4million, ahead of the receipt of quarterly recurring cash from the company’s platform providers (anticipated to be at least £2.5million) due imminently,’ it told investors.
WH Ireland shares were 3 per cent lower at 18.43p in afternoon trading on Monday. They have fallen by more than a fifth since the start of the year.
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