WH Ireland raises £5m in discounted placing, to stay loss-making until November

(Sharecast News) – Broker and wealth manager WH Ireland tanked on Friday after a heavily discounted share placing in which it raised £5m, as it warned it will likely remain loss-making until at least November.
The company placed just over 166.6m shares with institutional and other investors at 3p each, which is a discount of 87% to the closing share price on Thursday.

Explaining its decision to carry out the placing, WH Ireland said that in the three months to the end of June, it made a pre-tax loss of £1.1m on revenues of around £5.6m.

“The loss in the period is as a result of the widely reported multi-year low level of transactional activity in the financial capital markets that has impacted the group’s Capital Markets division (CM), alongside a reduction in assets under management (AUM) for the group’s Wealth Management division (WM), in part due to weaker market conditions impacting client portfolio size,” it said.

“With market conditions remaining challenging, including transactional activity in the CM division being typically at seasonally lower levels during the summer months, the directors do not believe that there will be an improvement in CM transactional activity during the current quarter nor do the directors believe there will be an uplift in AUM within the WM division over the same period. The directors therefore believe the group will remain loss making until at least November 2023.”

WH Ireland said that before the placing, it had been in talks with the Financial Conduct Authority about a potential solvent wind down. The broker noted that its current regulatory capital position is around £1.9m below the FCA’s regulatory capital requirement.

At 1300 BST, the shares were down 63% at 8.40p.

Related Articles

Sign up to the Wealth DFM Newsletter

Please enable JavaScript in your browser to complete this form.
Name

Trending Articles

IFA Talk logo

IFA Talk is our flagship podcast, that fits perfectly into your busy life, bringing the latest insight, analysis, news and interviews to you, wherever you are.

IFA Talk Podcast – listen to the latest episode

Wealth DFM
Privacy Overview

This policy explains how IFA Magazine collects, stores use, and shares personal information (including but not limited to information from which you can be personally identified such as your name, address, job title, company, email address, or telephone number) and information about your visits to the network, including the pages you view, the links you click and other actions taken in connection with www.ifamagazine.com, www.gbinvestments.co.uk, www.robopromedia.com, www.mvpromedia.com.

IFA Magazine Publications Limited may update this Policy at any time. It is your responsibility to check for updates to this Policy, as your continued use of the website denotes an acceptance of this Policy. Unless stated otherwise, IFA Magazine Publications Limited’s current Policy applies to all information that IFA Magazine Publications Limited has about you and your account.