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WH Ireland (LSE:WHI), a financial services firm, has announced its final results for the fiscal year ended March 31, 2024. The company faced a challenging year, marked by restructuring efforts and strategic divestments, leading to a significant statutory loss before tax. However, WH Ireland has outlined a clear path forward, focusing on operational development and cost reduction to return to sustainable profitability.
Financial and Operating Performance
For the fiscal year 2024, WH Ireland reported a revenue decline to £21.5 million, down from £26.7 million in the previous year. This decrease in revenue reflects the challenging operating environment and the impact of restructuring initiatives.
The company’s underlying loss before tax widened to £2.5 million, compared to an underlying loss of £2.0 million in FY 2023. The statutory loss before tax significantly increased to £5.9 million, up from £1.8 million in the previous year. This substantial loss was primarily driven by:
- Restructuring Costs: The company incurred restructuring costs of £2.9 million during the year, which were not present in FY 2023.
- Reduced Loss on Investments: While there was a reduced loss on investments, amounting to £0.6 million (compared to a £2.7 million loss in FY 2023), it was not sufficient to offset the overall financial challenges.
- Absence of Other Income: The company did not benefit from any other income during FY 2024, a sharp contrast to the £2.2 million received in FY 2023.
The loss per share for FY 2024 was 3.38p, compared to a loss of 3.08p in the previous year, reflecting the difficult financial landscape WH Ireland navigated during the period.
Cash Position and Capital Raising
As of March 31, 2024, WH Ireland reported cash and cash equivalents of £4.9 million, slightly up from £4.2 million at the end of the previous fiscal year. By July 31, 2024, this figure had improved to £6.5 million, bolstered by a successful £5 million placing completed in August 2023.
Strategic Divestments and Post-Period Developments
In a significant post-period event, WH Ireland completed the disposal of its Capital Markets (CM) division in July 2024. The sale, valued at up to £5 million in deferred consideration, has resulted in reduced liabilities and a lower working capital requirement for the company. This strategic divestment aligns with the company’s focus on streamlining operations and concentrating resources on its core Wealth Management (WM) division.
Additionally, WH Ireland settled the final deferred consideration related to its 2020 acquisition of Harpsden, further reducing financial obligations.
Current Trading and Future Outlook
Looking ahead, WH Ireland is committed to the operational development of its Wealth Management division while remaining open to strategic opportunities as they arise. The company has decided not to actively pursue a sale of the WM business at this time, indicating confidence in the division's long-term potential.
Moreover, WH Ireland plans to further reduce Group central costs following the sale of the CM division. These cost-cutting measures, combined with the strategic focus on Wealth Management, are designed to help the company return to sustainable profitability in the coming years.
