The precipitous decline of wealth manager and Financial Planner WH Ireland has been like watching a car crash unfolding before your eyes.
The sad decline of a company with a history dating back to 1872 is a lesson in failure and a stark reminder that success in the wealth management and Financial Planning sectors is far from guaranteed.
Yes the sector may be booming but success and growth can only be achieved by good long term management and business acumen.
The latest twist in the saga came this week after the sale of WH Ireland’s wealth arm to Oberon Investments for £1m had to be aborted at the last minute after 95% of WH Ireland shareholders objected to the deal. Two directors, including chair Simon Moore, handed in their resignations after calling the result a vote of no confidence.
So what’s gone wrong and why is the company seeking to wind up?
Critics have claimed that the firm has not been well managed and too many poor decisions have been made over the years. There has also been concern about high costs and executive pay as the firm has spiralled downwards over the past few years.
Various parts of the firm have been sold off in recent times in an ongoing fire sale.
The firm has been losing money. It made a pre-tax loss of £1.9m in the past year after losing £2.5m the previous year. Revenue has almost halved from £21.5m in 2024 to £13.2m this year. It’s all been in a bit of a pickle.
Having said this, the firm does have reasonably substantial reserves and directors have been trying hard to seek an orderly run down of the business despite the challenges.
It’s difficult to know why all this has happened but the toxic mixture of declining financial fortunes and a failure to turn the business around have been key factors.
Ultimately a way ahead needs to found and it’s likely there will be further efforts to sell the wealth arm which still retains some value and has total assets of £1bn.
WH Ireland itself sat in a difficult space between the smaller adviser firms and the big players. Squeezed by both sides it struggled. Success is never guaranteed and most firms are only a few bad decisions from rocky shores.
Being in the right sector adds wind to the sails but if the ship is sailing in the wrong direction the danger of hitting the rocks is high.
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Kevin O’Donnell is editor of Financial Planning Today and a journalist with 40 years of experience. This topical comment on the Financial Planning news appears most weeks, usually on Fridays but occasionally other days. Email: This email address is being protected from spambots. You need JavaScript enabled to view it. Follow @FPT_Kevin
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