31st Jul 2019 11:55
(Alliance News) - WH Ireland Group PLC on Wednesday reported a dip in annual profit and revenue, as the company completed its turnaround amid an "extremely challenging" period.
In the financial year ended March 31, the wealth manager and corporate broker saw its pretax loss widen to GBP10.2 million compared to GBP3.7 million in the 16 months to the end of March 2018.
Against the same extended period comparator, WH Ireland's revenue declined 35% to GBP23.7 million versus GBP36.4 million.
The reporting period change came following a decision to change the company's year-end to a "more conventional one".
At March 31, WH Ireland held GBP2.51 billion in funds under management, 2.0% lower than at the same point a year ago.
The company has been deliberately attempting to reduce its non-discretionary assets and noted discretionary managed assets continued to increase as a proportion of the total funds under management - rising to 47% from 42.1% a year ago.
The company said the past trading period was "extremely challenging". Chief Executive Officer Phillip Wale was appointed in August last year and since has hired a new chief financial officer, head of private wealth management, and head of compliance and risk.
As a result of these senior executives changes, and reducing the company's head count to 178 from 192, WH Ireland incurred GBP4.1 million in one-off costs.
"In addition, the migration of private clients to the new SEI platform has experienced many teething problems which have led to duplicated costs as the project has been integrated," Wale explained.
He continued: "Finally, the uncertain economic and political climate in the UK as a result of Brexit has led to a reduction of new equity issues in the London stock market, which has affected our profitable corporate broking business."
WH Ireland said the decline in new issuance activity for the CIB division has pushed revenue down "by more than explained simply by a shorter accounting period alone".
The company did not propose a dividend, same as last year.
WH Ireland said its new financial year has started well "on all fronts".
The company added: "Our costs are down as is our total group headcount and revenue initiatives are well advanced, as are the now re-energised projects to eliminate inherited legacy systems, processes and associated costs."
WH Ireland's head count at the end of June was 159.
"I am excited about the future of WH Ireland. We have exceptional people, a cleansed, debt free balance sheet and the support of our shareholders and a refreshed board. Our plan, a simple one, is to build the business by reducing its unnecessarily high costs, retire legacy systems and improve the quality of our earnings across both divisions," added Wale.
Shares in WH Ireland were 3.4% lower in London on Wednesday at 40.09 pence each.
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