Wealth manager WH Ireland has announced plans to raise a further £2.5m to drive its growth plans.
The fundraising will be carried out through the issuance of new ordinary shares at 48 pence each.
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The placing, which is pending regulatory nod, is said to offer a “significant buffer” to the firm’s minimum regulatory capital requirement.
WH Ireland’s regulatory capital solvency ratio is expected to move beyond 150% with the move. The placing is also expected to lift the firm’s core tier 1 capital ratio.
Commenting on the move, the firm said: “This Placing, along with our anticipation of a return to monthly profitability by the start of the new financial year (and management internal forecasts indicate a £1.0m loss before exceptional items for the 12 months ending March 2020 on a projected revenue of £23.2m, subject to market conditions) will strongly position the Group to exploit the opportunities available to it over the coming months from both a transactional and a recruitment perspective.
“The Directors believe that the Placing is the most cost effective and certain method to raise funds at this time, avoiding the significant costs and uncertainty associated with a public offering requiring a prospectus.”
The decision comes as the wealth manager cut down its losses.
In the first six months of 2019, the firm posted an operating loss of £0.89m. The figure was 54% lower than the previous year’s loss of £1.94m.
Revenue dropped 11% to £11.36m on a year-on-year basis.
