WH Ireland hit by financial waves
NATIONAL stockbroker WH Ireland, which has an office in Leeds, today said ongoing turmoil in world financial markets had impacted on its full year performance.
But the firm said any downturn experienced by the credit crunch had been counteracted by strong performances in other areas of the business.
In a trading update, WH Ireland said: "The performance of the financial services and stockbroking businesses has been impacted by the volatility of global stock markets caused by the US sub-prime crisis. However this has been mitigated by a strong contribution from realised and unrealised gains on fixed asset investments."
The Alternative Investment Market (AIM)-listed company said its corporate finance and corporate broking operations had continued to perform well in the financial year to November 30.
During the second half of the year, the corporate finance division acted for seven admissions to AIM and undertook six secondary fundraisings, raising more than £30m for corporate clients.
WH Ireland said despite lower market values in the second half of the year, group funds under management remained constant at more than £1.5bn, compared to £1.35bn at the previous year end.
Its UK Growth Trust fund increased from £60m to £88m and its Australian subsidiary, WHI Australia Pty, significantly contributed to turnover and profit, the company said.
WH Ireland, which said it would continue to consider the takeover approaches it had received but said it could not guarantee any offer being made for the company, established a Leeds operation when it bought discount brokerage TD Waterhouse's institutional business in January 2006.
The acquired TD Waterhouse team comprised three analysts and eight institutional sales personnel, specialising in the hotel, leisure, support services and transport sectors. The team has now grown to more than 20, and moved to new premises in Canal Wharf.
For the six months to May 31, WH Ireland achieved a 58 per cent increase in pre-tax profits to £3.69m, while turnover rose 35 per cent to £21.5m.
The company, which added that the refurbishment of its Manchester head office would help to increase its net asset value, expects to announce its preliminary results on February 25.
