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Brexit uncertainty impacts WH Ireland trading

Published: 09:05 21 Jul 2016 BST

Man at tickers screens holding his head in frustration
"I fear that over the summer months investor confidence will remain very cautious and risk averse."

WH IRELAND Group PLC (LON:WHI) was one of the biggest fallers this morning after  mounting costs and Brexit woes pushed it into the red.

The financial services group saw a £1.1mln operating loss in the six months ended May, compared to a profit of £0.3mln last year. Turnover was down from £15.9mln to £12mln.

Lower client commissions meant transactional income was down £4mln as clients held back due to the market uncertainty surrounding the EU referendum.

“The UK EU referendum result, rather than removing uncertainty which all market participants sought, has created more, albeit different, uncertainties,” said chief executive Richard Killingbeck.

“This is not good for short-term sentiment and I fear that over the summer months investor confidence will remain very cautious and risk averse. This will therefore continue to impact the trading outlook for both of our divisions.”

The group said market performance had also been hit by one-off non-trading costs due to a number of changes at the firm, including a partnership with SEI to support its wealth management platform.

Costs included severance payments, legal and advisory fees, and temporary employment costs within the compliance department.

The group also incurred legal costs of £600,000 relating to the partnership with SEI Corporation announced last month.

Although the short term outlook was bleak, the company was optimistic about the long term.

It said such market disruption has in the past generated some considerable opportunities for the group.

"We will continue to keep all avenues open to take advantage of such opportunities as they arise," assured Killingbeck.

Recurring revenue rose 10% to £5.6mln and assets under management and administration was up 6% to £2.67bn.

WH Ireland also agreed terms for the sale of its freehold property in Manchester, which the group hopes will provide it with greater balance sheet liquidity and greater flexibility.

Shares were down just under 9% to 80p.

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