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.

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.”

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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.