Year End Trading Update

RNS Number : 4976I

W.H. Ireland Group PLC

02 April 2020

 

2 April 2020

WH Ireland Group Plc

("WH Ireland" or the "Company")

Year End Trading Update

WH Ireland today announces a trading update for its financial year ending 31 March 2020.

WH Ireland has continued to make good progress in returning the business to profitability with a strong and effective control framework. Progress on revenue and cost actions were sufficient to see a small profit in the month of January consistent with our expectation of returning to monthly profitability by the start of the new financial year. However, both February and March experienced a loss, as market levels and corporate activity were impacted by the COVID-19 pandemic.

During the year, positive momentum was building across the Company with the completion of re-pricing actions across Wealth Management, 12 new corporate client wins in Corporate and Institutional Broking and selective new hires, all of which are some of the key drivers behind improving the quality and resilience of the business. The benefit from the planned further cost initiatives reinforced this positive shift and has created a strong platform from which to build the business in the years ahead.

In the last few weeks, the impact of COVID-19 on Corporate and Institutional activity has been notable, and the reduction in market levels has reduced our Wealth Management income. As a result, the Company is not now expected to achieve monthly profitability by the start of the new financial year. The Company expects to report an operating loss before exceptional items for the 12 months ending 31 March 2020, of approximately £2.2m on revenue of approximately £21.3m.

In response to these circumstances, the Board has already undertaken a number of additional decisive actions across the business to reduce costs and more closely align the cost base to the levels of revenue generation we are currently seeing. In particular, it has accelerated the move to a greater element of remuneration being related to profitability.  

Commenting, Phillip Wale, CEO said "The business starts the new financial year with a more resilient business model, a strong balance sheet and the majority of its anticipated revenue being recurring in nature. The Company will continue to focus on providing the high levels of service and support our clients' need in these challenging times".   

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/James Bavister	[phone]

 

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