Troubled wealth manager WH Ireland has sold its loss-making £1bn wealth management business to Oberon Investments for £1m in cash and says it will begin winding down the business.

In a stock market update today, the firm said the deal was expected to complete around the end of October.

WH Ireland had unsuccessfully tried to sell its loss-making wealth management arm last year after facing being wound up the year before.

It said previously it would focus on the development of the wealth management arm and assess “opportunities” as they arise after selling its capital markets division to Zeus Capital in July 2024 to help stabilise its finances.

In December it said it had trimmed losses as it tried to turn around the business.

Today it said: “Despite implementing further cost-saving measures, the Group's Wealth Management business continues to be loss-making and would require substantial investment to achieve sustainable profitability, but the board believes that a further capital raise to fund such investment would be highly dilutive and difficult to execute in current circumstances.

"Against this backdrop, the board believes that the transaction with Oberon represents the best available outcome for stakeholders.”

The statement added that: “During FY 2025 the Wealth Management business was impacted by market declines and the resignation of key Financial Planners from the group's Henley office all of which resulted in total assets under management falling to £1bn at the FY2025 year-end.” The figure was down from £1.2bn the previous year.

In February WH Ireland sold its Henley Financial Planning team to Verso Wealth Management for up to £500,000 and said it will close its Henley office.

WH Ireland said it expects to report an anticipated group loss for FY2025 of around £9.2m, up from a £5.9m loss in 2024.

It said: “The Group now intends to delist from the AIM market and commence a process of winding down its operations.”

The firm saw a £5m rescue deal thrashed out in the summer of 2023 which saved the company. In August WH Ireland shareholders had backed the fund-raising move to help stabilise finances at the firm. WH Ireland warned that it was in danger of being wound up if the deal had not gone ahead.

As part of the cost-cutting deal, chief executive Phillip Wale took a 30% pay cut in return for share options. Other senior executives, including head of wealth management Michael Bishop, also agreed to take pay cuts.

In the previous months the company cut its workforce by 45 to 111 as it strived to cut costs. The firm's discussions with the FCA about its financial position could have resulted in the company being wound up if the summer 2023 share placing was unsuccessful. In the event it was successful.