- WH Ireland expects to report an increased loss for the 16 months to 31 March as a result of reduced transactions from the Corporate and Institutional Broking division and higher costs in the Private Wealth Management division.

After a positive 2017, the Corporate and Institutional Broking division saw reduced levels of transaction based fee income in the final few months of the reporting period.

A number of these transactions were deferred and whilst the pipeline of potential new business remains solid, delivery will be dependent upon prevailing market conditions.

The Private Wealth Management division has continued its transition to an advice-led, fee-driven model.

The fee paying service propositions (Discretionary and Managed Advisory) account for over 70% of total assets under management, helping to boost fee income by over 20% relative to the previous 12 months. Over the same period the wealth planning team has witnessed a 50% growth in fees.

Execution only assets declined significantly after platform fees were introduced for the first time for this service. Recurring fee revenue now accounts for more than 60% of total revenue in the division.

Investment costs in regard to the operational platform changes have remained higher than expected during the final four month period, primarily as the resolution of legacy issues has taken longer than anticipated to complete.

WH Ireland said the full benefits of identified cost savings will be a significant contributor to profitability in the current financial year.

In 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.

At 9:42am: [LON:WHI] W.H. Ireland Group PLC share price was -13p at 110p

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