The company highlighted that the period gave way to a “moribund” UK stock market over fears surrounding Chinese growth, commodity price deflation and the “Brexit” referendum. 

Turnover fell by a quarter year-on-year to £12 million as incremental one-off costs reached around £600,000. The costs, largely within the compliance department, included severance payments, legal and advisory fees and temporary employment costs. In February, the UK's Financial Conduct Authority fined the company £1.2 million for failing to have controls in place to prevent market abuse.

WH Ireland also incurred legal costs in relation to its seven-year agreement with SEI Investments to outsource wealth management back-office operations.

The private wealth division generated a loss of £627,000 during the six months, compared to a profit of £633,000 a year earlier. Assets under management and administration rose by 6 per cent to £2.67 billion, of which discretionary assets grew by 24 per cent to £949 million, compared to £767 million at the end of November. 

“The UK EU referendum result, rather than removing uncertainty which all market participants sought, has created more, albeit different, uncertainties. This is not good for short-term sentiment and I fear that over the summer months investor confidence will remain very cautious and risk averse. This will therefore continue to impact the trading outlook for both of our divisions,” Richard Killingbeck, chief executive at WH Ireland, said in a statement on the London Stock Exchange.

“We remain focused upon tight operational cost control and have further reduced costs, since the half year end.”