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What's happening at WH Ireland?

Created:
14 July 2008
Written by:
Malar Velaigam

The last we heard, WH Ireland had shaken off the attentions of Blue Oar Securities (which subsequently went on to acquire Astaire & Partners) and pulled in some new investors amidst some shareholder opposition. But what's been happening since? And how are the brokers planning to fight against the reverberations of the credit crunch?

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"We are not interested in the next six months," answers new key shareholder Rupert Lowe. "We are on a long-term play."

This explains WH Ireland's unwillingness to get involved in bid talks - unlike its peers - and its silence since (also unlike its peers). Mr Lowe adds that he feels that WH Ireland is more than just a small cap broker, and now that the group is not plagued by bid talks, management can focus on building it into the global player they aspire it to be.

A new chief executive - asset and fund manager Richard Ford - has been installed to replace Laurie Beevers (who takes up the role of executive deputy chairman), and Mr Lowe says there will be a "thorough review" of WH Ireland's business. Considering Mr Ford's forte, it no surprise that fund and asset management will be high - if not top - on the list of priorities.

Mr Lowe assures that there is a market for an "independent but strong broker and fund and wealth manager", adding that with the new shareholders' connections it shouldn't be difficult to find good new staff.

Another big priority is Australia. WH Ireland has a lucrative fund management business there that is growing on the back of Australia's booming mining sector.

The group is seeking to strengthen its position in Perth and the east coast of the country, including a possible acquisition in the region that may not be too far off. There will also be moves to increase the business flow between London and Perth.

This is all very exciting, but its important to remember that these plans have not yet commenced. The new investors are indeed well connected, and respected, businessmen, and it will be interesting to see whether WH Ireland can use its blossoming fund management activities as a cushion against its declining stockbroking business and as a tool for future growth.

Who are the new investors?

The 'new' shareholders consist of a consortium led by former Tory treasurer Lord Marland, and include Carphone Warehouse co-founder David Ross and City businessmen Rupert Lowe and David Whelan. The consortium acquired 9.94 per cent of the group from a party of existing shareholders including Mr Beevers on 1 April. By 14 May, the consortium had managed to win approvals to increase their collective stake in the broker to 25 per cent.

Lord Marland and Rupert Lowe were subsequently appointed to the WH Ireland board with Roland Rudd slated to be its next non-executive director, subject to necessary approvals.

WH Ireland is obviously still in something of a state of flux and the confidence of its management in such tough equity markets is bold to say the least. Investing in any of the small cap brokers now would be an extremely brave move so WH Ireland is probably best left on the watch list for now.

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