WH Ireland posts first half loss after challenging market conditions for the broker

Wealth manager and broker WH Ireland has recorded a first half loss amid a challenging market backdrop, but the chief executive pointed to recent tentative signs of improvement.

For the six months to September 30 the group saw revenue decline to £10.7 million from £14.3 million.

It posted a statutory pre-tax loss of £3.9 million, widened from a £0.4 million loss a year earlier. That included non-recurring costs of £1.7 million.

The performance follows a challenging year for the firm which offers wealth management services, and a capital markets team providing financial advisory and broking services to public and private growth businesses.

In July the company completed an emergency £5 million fundraising after announcing that it made a pre-tax loss of £1.1 million in the three months to June 30. That was owing to a multi-year low level of transactional activity in the financial capital markets impacting the firm, and a reduction in assets under management in its wealth management arm.

At that time the group said it would start a collective consultation regarding headcount reduction to lower costs. In addition it proposed certain senior management team members would sacrifice a proportion of their salary.

In an update today WH Ireland said a substantial cost reduction exercise completed post half year end. Total headcount reduced to 111 against 156 a year ago and it added thar underlying monthly profitability (unaudited) was achieved in November.

Chief executive Phillip Wale said: “Market conditions, while remaining challenging, have shown some tentative signs of improvement in both indices and activity levels since November; enabling us to undertake some of our largest fundraisings for many months across both public and private markets.”

Wale also said: “WH Ireland is now in a stronger financial position as a result of the delivery of our cost efficiency programme."

Last month the firm announced the appointment of Simon Moore as non-executive chair (subject to FCA regulatory approval) and Garry Stran as a non-executive director with immediate effect.

Wale said in November that their experience will strengthen the board's skillset.