Acquisition of Client List from Pritchard

RNS Number : 3236Y

W.H. Ireland Group PLC

29 February 2012

 



Press release

29 February 2012

WH Ireland Group plc

("WH Ireland" or the "Company")

Acquisition of Client List from Pritchard Stockbrokers Limited

WH Ireland is pleased to announce that, through its wholly owned subsidiary, WH Ireland Limited ("WHIL"), it has today acquired certain assets (the "Acquired Assets") from Pritchard Stockbrokers Limited ("PSL") and its wholly owned subsidiary, Prism Nominees Limited, for a cash consideration of up to £500,000 plus VAT (the "Transaction").  The Acquired Assets include a substantial part of PSL's client list consisting of approximately 8,000 active private clients and, as part of the Transaction, the non-cash assets under management relating to those clients, valued at approximately £400 million, will transfer to the control of WHIL. In the financial year ended 30 June 2011, the Acquired Assets generated a loss of approximately £6,000 for PSL.

The total consideration payable to PSL is structured as follows:

·     £250,000 was paid in cash on completion of the Transaction; and

·     up to a further £250,000 in cash will be paid subject to the Acquired Assets being 
successfully transferred to WHIL within an agreed timeframe and subject to adjustments relating to costs incurred by WHIL, on behalf of PSL, in relation to effecting the transfer of the Acquired Assets.

The Transaction will increase WHIL's number of private-client stockbroking clients by approximately 50% and total assets under management by approximately 25%.

On 10 February 2012 the Financial Services Authority issued a First Supervisory Notice to PSL.  This notice prevents PSL from undertaking any further regulated activities. Following completion of the Transaction, WHIL will be in a position to undertake regulated activities for those of PSL's clients that have transferred to WHIL.

Paul Compton, the Company's Chief Executive commented: "The Transaction increases our regionally based private client business and moves our nominee funds total forward. It provides an immediate resolution to what had become a worrisome situation for PSL clients.  We welcome them to WH Ireland and look forward to meeting their financial needs.  We fully expect this Transaction to be earnings enhancing in the first full year following completion."

- Ends -

For further information please contact:

WH Ireland Group plc	[phone]
Paul Compton
Panmure Gordon (UK) Limited	[phone]
Hugh Morgan/Callum Stewart (Corporate Finance)
Adam Pollock (Corporate Broking)
Abchurch Communications	[phone]
Joanne Shears / Oliver Hibberd

 

END

 

 

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