Update on Isle of Man Office

RNS Number : 2864R

W.H. Ireland Group PLC

29 June 2020

 

WH Ireland Group Plc

("WH Ireland" or the "Company"

and with its subsidiaries the "Group")

Update on Isle of Man Office

WH Ireland confirms today that it has executed a conditional agreement with Ravenscroft Holdings Limited ("Ravenscroft") to dispose of its Isle of Man subsidiary, WH Ireland (IOM) Limited (the "IOM Subsidiary"). WH Ireland also intends to enter into a collaboration agreement with Ravenscroft. This collaboration agreement will enable WH Ireland's continuing wealth management business to offer solutions to clients in international jurisdictions.

Phillip Wale, WH Ireland Chief Executive, said :

"We are pleased to announce this next step in streamlining WH Ireland's wealth management operations into a smaller number of integrated, larger locations focused on delivering a high quality service to our private clients.

The disposal of the Isle of Man subsidiary will continue this process whilst freeing up capital and management resources to focus on and invest in growing the core wealth management business and returning it to profitability. "

Details of the Agreement

The IOM Subsidiary holds the business and largely institutional assets of the Group's Isle of Man wealth management office. Started as a new venture in 2014, the office now provides investment management services to a diverse international client base and contributes approximately £1.2m of annual revenue to the Group (IOM audited accounts, 31 March 2019).  The Assets Under Management of this office were £337m (IOM audited accounts March 2019) and are £353m as at 25 June 2020 (unaudited). The business has six full time employees (including two executive directors) and two non-executive directors.

Ravenscroft is an independently owned investment services group listed on The International Stock Exchange with offices in Guernsey, Jersey and the UK. Ravenscroft employs more than 100 people across these jurisdictions and has £7.45bn of assets under administration (audited accounts, 31 December 2019) with revenue of more than £27.85m (audited accounts, 31 December 2019). The Ravenscroft group services both private and institutional clients.

The consideration payable under the agreement to WH Ireland for the IOM Subsidiary is a cash payment of £250,000 and a deferred payment of up to £412,500. The deferred payment will be determined by reference to the ongoing trading of the office after completion. Just prior to completion, the Company will also receive repayment in full of the intra-group subordinated loan it provided to the IOM, of £985,000 and a further intercompany loan repayment of £160,000.

The conditional disposal is progressing with the full support of the directors of the Isle of Man Office. Completion of the transaction is conditional on, inter alia, the receipt of all necessary regulatory approvals from the Isle of Man Financial Services Authority.

Further updates will be provided in due course.

For further information please contact:  

WH Ireland Group plc	www.whirelandplc.com
Phillip Wale, CEO	[phone]
SPARK Advisory Partners Limited
Andrew Emmott	[phone]
MHP Communications Reg Hoare	[phone]

 

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