RNS Number : 3236Y
W.H. Ireland Group PLC
29 February 2012
Press release 29 February 2012
WH Ireland Group plc
("WH Ireland" or the "Company")
Acquisition of Client List from Pritchard Stockbrokers Limited
WH Ireland is pleased to announce that, through its wholly owned subsidiary, WH Ireland Limited ("WHIL"), it has today acquired certain assets (the "Acquired Assets") from Pritchard Stockbrokers Limited ("PSL") and its wholly owned subsidiary, Prism Nominees Limited, for a cash consideration of up to GBP500,000 plus VAT (the "Transaction"). The Acquired Assets include a substantial part of PSL's client list consisting of approximately 8,000 active private clients and, as part of the Transaction, the non-cash assets under management relating to those clients, valued at approximately GBP400 million, will transfer to the control of WHIL. In the financial year ended 30 June 2011, the Acquired Assets generated a loss of approximately GBP6,000 for PSL.
The total consideration payable to PSL is structured as follows:
-- GBP250,000 was paid in cash on completion of the Transaction; and
-- up to a further GBP250,000 in cash will be paid subject to the Acquired Assets being successfully transferred to WHIL within an agreed timeframe and subject to adjustments relating to costs incurred by WHIL, on behalf of PSL, in relation to effecting the transfer of the Acquired Assets.
The Transaction will increase WHIL's number of private-client stockbroking clients by approximately 50% and total assets under management by approximately 25%.
On 10 February 2012 the Financial Services Authority issued a First Supervisory Notice to PSL. This notice prevents PSL from undertaking any further regulated activities. Following completion of the Transaction, WHIL will be in a position to undertake regulated activities for those of PSL's clients that have transferred to WHIL.
Paul Compton, the Company's Chief Executive commented: "The Transaction increases our regionally based private client business and moves our nominee funds total forward. It provides an immediate resolution to what had become a worrisome situation for PSL clients. We welcome them to WH Ireland and look forward to meeting their financial needs. We fully expect this Transaction to be earnings enhancing in the first full year following completion."
- Ends -
For further information please contact:
WH Ireland Group plc +44 (0) 20 7220 1666
Panmure Gordon (UK) Limited +44 (0)20 7459 3600
Hugh Morgan/Callum Stewart (Corporate
Adam Pollock (Corporate Broking)
Abchurch Communications +44 (0)20 7398 7714
Joanne Shears / Oliver Hibberd
This information is provided by RNS
The company news service from the London Stock Exchange