WH Ireland Group PLC (LON:WHI) saw its shares plunge in lunchtime trading Thursday after it issued a loss warning for the 16-month period ended 31 March.
The AIM-listed City broker said higher costs in private wealth management and a decline in execution-only business, as well as reduced transactions from the corporate and institutional broking division, were all affecting the group’s results, which it will release on 16 July.
In transition over last 16 months
However, the firm added that, due to the combination of lower costs in the private wealth management division, together with more normalised levels of transaction revenue from the corporate and institutional broking unit, it anticipated "strong progress in the group's profitability during the current financial year".
The group has been engaged in a transition period over the last 16 months, in which it is seeking to transform its wealth management division to an advice-led, fee-driven model.
WH Ireland shares were down 11.3% at 109p.