AIM-listed firm saw sharp decline in transactions in H1 but pipeline has since rebounded
Companies: WH Ireland Group plc
AIM-listed wealth manager and stockbroker WH Ireland has released a mixed trading update for FY16, reporting challenging conditions in key markets and rising costs in H1, followed by significantly improved performance in H2.
The company says it has been "one of the toughest" years since the 2008 financial crisis for the financial services industry, with rising costs related to increased regulation, and transaction driven revenue pressure. Despite challenging conditions, management said it has continued to invest in the business:
"Against this backdrop, WH Ireland has continued to invest in the business and the progression to a new private client operating platform is on schedule for the second quarter of 2017. The majority of the exceptional costs associated with this change will be taken in 2016, and as such will be fully disclosed within the annual results.
The focus upon fees in the Wealth Management division continues and assets under management and administration have increased during 2016 to approximately £3billion."
As a result, WH Ireland's Corporate Broking division saw a sharp decline in transaction revenues, but today's announcement confirmed that it has since rebounded, and client activity and future pipeline has improved significantly.
The Board said it remained cautiously optimistic about 2017, believing the better market environment experienced in H2 was a good sign for 2017.
Shares in WH Ireland opened flat on Monday.
