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(Alliance News) - WH Ireland Group PLC on Wednesday announced the appointment of a new non-executive chair, a GBP2.5 million fundraise, and a narrowed interim loss.
The wealth manager and corporate broker has selected Phillip Shelley, whose appointment to the board as a non-executive director is still pending UK Financial Conduct Authority approval. The current chair, Tim Steel, will remain with the firm until FCA approval is obtained for Shelley.
Shelley was head of Corporate Broking at UBS Group AG before going on to run the Corporate Broking & Equity Capital Markets team at Goldman Sachs Group Inc. Following that he joined Barclays PLC and was vice chair of its investment bank. In September 2018, set up Arlington Capital Markets Ltd, which advises companies preparing to float on the stock market, as well as those that are already listed.
The company has also appointed a new executive director, Stephen Ford, again subject to FCA approval. Ford joined WH Ireland in February 2019 as head of Wealth Management.
Turning to its results, WH Ireland posted a GBP1.3 million pretax loss for its half-year ended September 30, narrowed from GBP2.1 million the year before. This was mostly due to administrative expenses, which shrank 18% to GBP12.2 million from GBP14.8 million.
Less positively, the company experienced an 11% drop in revenue to GBP11.4 million from GBP12.8 million. This included a 15% drop in Private Wealth Management revenue to GBP6.9 million from GBP8.1 million a year before and a 7.1% decline in Corporate & Institutional Broking revenue to GBP3.9 million from GBP4.2 million.
WH Ireland is expecting to return to profitability in its next financial year after further cost reductions. However, for its current financial year ending March 2020, internal management forecasts suggest a GBP1.0 million loss before exceptional items.
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."
More immediately, it is undertaking a GBP2.5 million minimum share placing at 48 pence per share. WH Ireland will act as its own broker for the placing, which is subject to shareholder approval. The money will help create "a significant buffer to its minimum regulatory capital requirement" and take its regulatory capital solvency ration to more than 150%. Its core tire 1 capital ration will also rise.
Shares in WH Ireland were up 1.6% at 49.80p in London on Wednesday morning.
By Anna Farley; annafarley@alliancenews.com
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