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WHI's pre-tax loss

Kevin Feddy
18/ 8/2008

MANCHESTER-based financial services group WH Ireland is halving its interim dividend after it swung to a first-half loss.

The AIM-listed company, which provides stock broking, investment and corporate finance services, posted a pre-tax loss of £685,000 for the six months to May 31, compared with a profit of £3.8m in the same period last year.

Revenues fell 25 per cent, from £21.5m to £16.2m as the credit crunch and economic downturn triggered a fall in stock market activity.

As a result, the firm said it would pay a dividend of 1p for the first half of the year.

Its performance was not helped by uncertainty caused by a series of takeover approaches late last year.

WH Ireland, which has its headquarters in St James's Square, also went through a boardroom upheaval. A consortium of businessmen, including former Tory treasurer Lord Marland, Southampton FC chairman Rupert Lowe and Carphone Warehouse co-founder David Ross, amassed a 27.4 per cent stake after a new shares issue.

As a result, Mr Lowe replaced Sir David Trippier as chairman while chief executive Laurie Beevers is moving to executive deputy chairman. His role as CEO will be taken by Richard Ford in mid-September.

Mr Lowe said the first half had been `arguably the most testing period for two decades' and that it was difficult to see an early end to the current economic malaise.

He added: "While the current turmoil in the financial markets may be responsible for a short-term downturn in revenues, it will bring with it new opportunities for those able to take advantage. We continue to focus on positioning the business so that we are well-placed to benefit from such opportunities."

He said he saw continued growth in Russia, eastern Europe, South America, Asia and India while investment in the business by the consortium and others would support the group's expansion through acquisition and strategic partnerships as well as organically.

Shares in the group fell 2.5p, or 2.46 per cent, to 99p after the update, valuing the business at £20.6m.