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WH Ireland issues profit warning on Mifid surprise

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WH Ireland issues profit warning on Mifid surprise

WH Ireland Group has issued a profit warning saying costs associated with managing Mifid II requirements were higher than earlier anticipated.

The business added that it had booked further exceptional costs related to its long-term strategic shift toward regulated wealth management. 

By 10am shares in the busienss were 2.04% or 2.5p lower at 120p.

Despite the warning, the company said that revenue had risen for the year to 30 November, a trend the company expects to continue.

‘Costs associated with the transition to the new model and MIFID II regulatory changes were higher than anticipated and these exceptional costs have adversely affected profitability in 2017,' it said in a statement. 

'Duplicated costs incurred during the period will decline significantly in 2018 benefiting future profitability,’ the company said in a trading statement.'

The profit warning comes after the group annouced earlier this year that it had narrowed losses thanks to its restructuring. 

One bright light in the trading statement was the continued transition of its private wealth management business to a discretionary based advice driven fee model and has grown this section of the business 15% year on year.

'Of particular note has been the success of our wealth planning team which has seen growth in revenue of approximately 40% over the same period,' it added. 

'The overall quality of our investment business continues to improve as we actively reduce the number of client relationships ( and the assets attached to those relationships ) from whom we have historically generated a very low return. This trend will continue into 2018.'

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