WH Ireland’s private wealth management unit has confirmed that it is set to post a loss for the last 16 months.
According to a trading statement published today, for the 16-month period ending at 31 March 2018, WH Ireland warned it will post a loss when their results are revealed, although it expect the situation to be reversed by year-end on March 2019.
The final results for the 16 month period ended 31 March 2018, are anticipated to be released during the week commencing 16 July 2018.
The trading statement said: “The Private Wealth Management division has continued its transition to an advice-led, fee-driven model. Our fee paying service propositions (Discretionary and Managed Advisory offerings) account for over 70% of our total assets under management as at the period end, helping to boost fee income by over 20% relative to the previous 12 months.
“Over the same period our wealth planning team has witnessed a 50% growth in fees. As expected, execution only assets have declined significantly as we introduce platform fees for the first time for this service proposition.”
The statement said it was “encouraging” that recurring fee revenue now accounts for more than 60% of total revenue in this division.
“We believe that the full benefits of identified cost savings in this division will be a significant contributor to profitability in the current financial year,” the statement read.
The combination of reduced transactions from the Corporate and Institutional Broking division and the continuation of higher costs in the Private Wealth Management division will result in an increased loss (subject to audit) for the 16 month period from that reported at the second interim 12 month period ended 30 November 2017, WH Ireland said.
“Looking forward to the year ending 31 March 2019, the board anticipates that 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 division will lead to strong progress in the Group’s profitability during the current financial year,” it concluded.