REG - W.H. Ireland Group - Interim Results <Origin Href="QuoteRef">WHI.L</Origin>

WH IrelandAnnouncement

21/07/2016 07:05

RNS Number : 7983E
W.H. Ireland Group PLC
21 July 2016
WH Ireland Group Plc
("WH Ireland" or the "Company")
Interim Results
for the six months ended 31 May 2016
WHIreland, the financial services group which provides private wealth management and corporate broking services, today, announces its interim results for its financial half year ended 31 May 2016.
FINANCIAL HIGHLIGHTS
 Group turnover of 12.0m (2015 comparative: 15.9m)
 Operating loss before exceptional items of 1.1m (2015 comparative: profit of 0.3m)
 Heads of Terms agreed for sale of Manchester Freehold Property
 Recurring revenue increased by 10% to 5.6m (2015 comparative: 5.1m), which represents 47% of total revenue
 Assets under management and administration increased by 6% to 2.672bn (30 November 2015: 2,520m)
 Discretionary assets under management increased by 24% to 949m (30 November 2015: 767m)
 Management fee income increased by 15% to 4.0m (2015 comparative: 3.4m)
 Number of retained corporate clients: 95 (30 November 2015: 98)


Chairman's statement
WHIreland continues to undergo significant transformational change which I described in my Chairman's statement at our 2015 year end. The interim results demonstrate both the continuing requirement for change and also the benefits, we believe, that this change will bring about when fully implemented.
Transactional income, primarily within the Corporate Broking division, fell considerably when compared with the same period a year ago as the UK stock market remained moribund over fears on Chinese growth, commodity price deflation and, more recently, the "Brexit" referendum. The Wealth Management division was not insulated from this increased uncertainty and this has been reflected in lower commission levels as a result of reduced client trading activity.
Change within WHIreland is being driven at many levels and in this context we have recently announced our intention to partner with SEI Corporation to provide a more robust operational platform to support the Wealth Management division. This will, when fully implemented, provide a significantly enhanced service for our clients. We have also made progress with the sale of our freehold property in Manchester and have agreed Heads of Terms for its sale. Whilst there is no guarantee the transaction will complete, the sale proceeds would provide greater balance sheet liquidity and greater flexibility as we look to develop both businesses and we look forward to providing further updates in due course.
Within the Private Wealth Management division, the focus on our discretionary offering has resulted in strong growth and we are able to report nearly 1bn of discretionary assets for the first time in the Company's history. Our focus on recurring fee income has shown similar positive growth over the first half of the year.
The resilience and strength of our client relationships in our Corporate Broking division has been borne out by the loyalty shown by our clients during a difficult period following the settlement agreement with our lead regulator, the Financial Conduct Authority ("FCA"). We can now look forward to making available our full range of services as we look to help our clients achieve their corporate objectives.
Finally, I would like to thank all members of staff across the Company who have worked tirelessly in supporting our clients, during what has been a very challenging first half of the year.
Tim Steel, Chairman WH Ireland Group plc


Chief Executive's statement

As the Chairman has stated, the first six months of the year has been a challenging period for stock markets and, consequently, for WHIreland. The figures released today reflect some one-off, non-trading costs which have been incurred as a direct result of the changes that we announced earlier in the year. 
These include severance payments, legal and advisory fees and temporary employment costs within our Compliance department. In addition, we have incurred legal costs in relation to the establishment of our partnership with SEI Corporation announced in early June. In total, these incremental one-off costs have amounted to approximately 600,000 during the period.
Transaction revenue, in the first half, was significantly lower as our corporate and institutional clients were reluctant to raise new capital or invest. When combined with lower client commissions within our Private Wealth Management division, our total transactional income across the business was lower by approximately 4m when compared to the same period a year ago. It is against this backdrop that a trading loss of approximately 1m needs to be measured and, whilst disappointing, demonstrates the strong oversight on operational costs which we have maintained throughout the period.
PRIVATE WEALTH MANAGEMENT DIVISION
We continue to concentrate on the delivery of our core strategic focus, namely the pursuit of fee paying clients through the delivery of either discretionary or advisory services. To accelerate this strategy, we have announced a partnership with SEI Corporation to provide us with the necessary operational tools to service the increased requirements that these clients demand. It is pleasing to be able to report that, since the beginning of the year, our total assets under management and administration have increased to approximately 2.7bn as at 31 May 2016 and that within this figure, the fastest growing segment was the discretionary service proposition. Management fee income across the division rose by 15% to approximately 4m during the period.
CORPORATE BROKING DIVISION
It is not unsurprising that, during a period when we were prevented by the FCA from undertaking regulated activities for a period of 72 days, this division reported a significant decline in transactional income. Despite this, our retainer income remained solid reflecting our consistently strong emphasis upon maintaining and growing our corporate client list. This also demonstrates the considerable loyalty afforded to us by our clients during this difficult period. Whilst the total number of retained clients fell by 3 to 95 at the half year primarily due to delistings, we still saw a number of smaller transactions completed towards the end of the period. I am cautiously optimistic that the number of corporate clients whom we advise will once again grow in number.
OUTLOOK
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. 
Against this potential poor backdrop to markets, we continue to focus both on improvement in revenue quality across the Company and the increase in shareholder value which the initiatives already announced will have when fully implemented. We remain focused upon tight operational cost control and have further reduced costs, since the half year end. 
The Corporate Broking division is working on a number of potential transactions which, if completed, will provide a significant revenue increase in the second half of the year, whilst the Private Wealth Management division is continuing to build on the enhanced service proposition and pricing review initiatives.
Whilst the short-term outlook is unclear, market disruption which we have seen in the past few weeks has historically generated some considerable opportunities across both business lines. We will continue to keep all avenues open to take advantage of such opportunities as they arise.
RichardKillingbeck,CEO WH Ireland Groupplc

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - UNAUDITED FOR THE HALF-YEAR ENDED 31 MAY 2016 

Half-yearended
31 May2016
'000
Half-yearended
31 May2015
'000
Yearended 30November2015 (audited) '000
Note
Revenue
2
11,960
15,942
30,884
Administrativeexpenses

(13,626)
(15,626)
(30,936)
Operating(loss)/profit

(1,666)
316
(52)





Operating(loss)/profitbeforeexceptionalitems
(1,098)
316
1,225
Exceptional items - FCAfine
-
-
(1,200)
 - FCAinvestigation expenses
(384)
-
(77)
- restructuringcosts
(184)
-
-
Operating(loss)/profit afterexceptionalitems
(1,666)
316
(52)




Investmentgains/(losses)
7
(98)
(89)
Fair value (losses)/gains oninvestments
(38)
385
(185)
Financeincome
7
16
21
Financeexpense
(96)
(26)
(41)
(Loss)/profit beforetax
(1,786)
593
(346)
Taxcredit/(expense)
269
(141)
(335)
(Loss)/profit and total comprehensive income for theperiod
(1,517)
452
(681)





Earningspershare




Basic
6
(5.95)p
1.86p
(2.81)p
Diluted
6
(5.95)p
1.82p
(2.81)p

CONSOLIDATED STATEMENT OF FINANCIAL POSITION - UNAUDITED FOR THE HALF-YEAR ENDED 31 MAY 2016 

Note
Half-yearended
31 May2016
'000
Half-yearended
31 May2015
'000
Yearended 30November2015
(audited)
'000
ASSETS




Non-currentassets




Property,plantandequipment
8
1,314
5,500
5,361
Goodwill

258
258
258
Intangibleassets

3,586
3,502
3,586
Investments
3
227
456
360
Deferred taxasset

567
350
298


5,952
10,066
9,863
Currentassets




Trade and otherreceivables

26,466
20,919
23,312
Assets held for sale
8
4,750
-
-
Tradinginvestments
3
286
261
1,932
Cash and cashequivalents
4
6,890
5,903
8,176


38,392
27,083
33,420
Totalassets

44,344
37,149
43,283





LIABILITIES




Currentliabilities




Trade and otherpayables

(26,141)
(17,685)
(24,059)
Corporation Taxpayable

(24)
(443)
(262)
Obligations under financeleases

(331)
(119)
(119)
Deferredconsideration

(242)
-
(262)
Borrowings

(174)
(174)
(179)
Provisionsforliabilitiesandcharges

(50)
(45)
(1,200)


(26,962)
(18,466)
(26,081)
Non-currentliabilities




Deferred taxliability

(126)
(205)
(126)
Obligations under financeleases

(493)
(50)
(50)
Accruals and deferredincome

(285)
(3,461)
(330)
Borrowings

(905)
(1,081)
(994)
Deferredconsideration

(2,968)
-
(2,863)
Provisionsforliabilitiesandcharges

(35)
(35)
(21)


(4,812)
(4,832)
(4,334)
Totalliabilities

(31,774)
(23,298)
(30,415)
Total netassets

12,570
13,851
12,868





EQUITY




Sharecapital
5
1,290
1,222
1,225
Sharepremium

1,443
343
379
Available-for-salereserve

7
7
7
Otherreserves

982
982
982
Retainedearnings

9,579
12,033
11,006
Treasuryshares

(731)
(736)
(731)
Totalequity

12,570
13,851
12,868

CONSOLIDATED STATEMENT OF CASH FLOWS - UNAUDITED FOR THE HALF-YEAR ENDED 31 MAY 2016 


Half-yearended
31 May2016
'000
Half-yearended
31 May2015
'000
Yearended 30November2015 (audited) '000

OPERATING ACTIVITIES




(Loss)/profit for the period

(1,517)
452
(681)
Adjustmentsfor




Depreciation,amortisationandimpairment

147
169
310
Financeincome

(7)
(16)
(21)
Financeexpense

96
26
41
Taxation

(269)
141
335
Gain/(losses)ininvestments

126
(363)
96
Non-cashadjustmentforsharebasedpayments

90
108
211
(Increase)/decrease in trade and otherreceivables

(3,154)
17,425
15,033
Increase/(decrease) in trade and otherpayables*

2,037
(20,172)
(13,877)
(Decrease)/increase inprovisions

(1,012)
(130)
1,011
Decrease/(increase) in tradinginvestments

1,646
629
(1,042)
Netcash(usedin)/generatedfromoperations

(1,817)
(1,731)
1,416
Income taxes(paid)/received

(238)
4
(398)
Netcash(usedin)/generatedfromoperatingactivities

(2,055)
(1,727)
1,018
INVESTING ACTIVITIES*




Proceedsfromthesaleofinvestments

397
646
904
Interestreceived

7
16
21
Acquisition ofinvestments

(390)
(160)
(781)
Payment of deferredconsideration

(39)
-
-
Acquisitionofproperty,plantandequipment

(5)
(60)
(74)
Netcash(usedin)/generatedfrominvestingactivities

(30)
442
70
FINANCING ACTIVITIES




Proceeds from issue ofshares

1,129
313
360
Repayment ofborrowings

(94)
(93)
(175)
Repayment of obligations under financeleases

(140)
(48)
(109)
Interestpaid

(96)
(37)
(41)
Dividendspaid

-
(437)
(437)
Netcashgeneratedfrom/(usedin)financingactivities

799
(302)
(402)
Net (decrease)/increase in cash and cashequivalents

(1,286)
(1,587)
686
Cashandcashequivalentsatbeginningofperiod

8,176
7,490
7,490
Cashandcashequivalentsatendofperiod

6,890
5,903
8,176
*Theinvestingactivitiesandmovementintradeandotherpayablesforthehalf-yearended31May2015,donotincludetheacquisitionof intangiblesfordeferredpaymentsof3,052m,treatedasanon-cashitem.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - UNAUDITED FOR THE HALF-YEAR ENDED 31 MAY 2016 
AS AT 1 DECEMBER2014
Sharecapital
'000
Sharepremium
'000
Available forsale reserve
'000
Other reserves
'000
Retained earnings
'000
Treasury shares
'000
Total equity
'000
Balance at 1 December2014
1,193
101
7
982
11,895
(763)
13,415
Profit and total comprehensive income for theperiod
-
-
-
-
452
-
452
CONTRIBUTIONS BY AND DISTRIBUTIONSTOOWNERS
Recognition of share-basedpayments
-
-
-
-
108
-
108
Share optionsexercised
29
242
-
-
15
27
313
Dividends(note7)
-
-
-
-
(437)
-
(437)
Totalcontributionsbyanddistributionstoowners
29
242
-
-
(314)
27
(16)
AS AT 31 MAY 2015
Balance at 31 May2015
1,222
343
7
982
12,033
(736)
13,851
Loss and total comprehensive income for theperiod
-
-
-
-
(1,133)
-
(1,133)
CONTRIBUTIONS BY AND DISTRIBUTIONS TOOWNERS
Recognition of share-basedpayments
-
-
-
-
103
-
103
Share optionsexercised
3
36
-
-
3
5
47
Dividends(note7)
-
-
-
-
-
-
-
Totalcontributionsbyanddistributionstoowners
3
36
-
-
106
5
150
AS AT 30 NOVEMBER2015
Balanceat30November2015
1,225
379
7
982
11,006
(731)
12,868
Loss and total comprehensive income for theperiod
-
-
-
-
(1,517)
-
(1,517)
CONTRIBUTIONS BY AND DISTRIBUTIONS TOOWNERS







Recognition of share-basedpayments
-
-
-
-
90
-
90
Capital raise (note5)
60
1,014
-
-
-
-
1,074
Share optionsexercised
5
50
-
-
-
-
55
Dividends(note7)
-
-
-
-
-
-
0
Totalcontributionsbyanddistributionstoowners
65
1,064
-
-
90
-
1,219
Balance at 31 May2016
1,290
1,443
7
982
9,579
(731)
12,570

Notes to consolidated statements (unaudited)
1. BASIS OF PREPARATION 
Statement of compliance
TheAIMRulesforCompaniesdonotrequireIAS34"InterimFinancialReporting"tobeapplied;thereforeithasnotbeenusedinthepreparationofthisinterimreport.
Thefinancialinformationinthisinterimreporthasbeenpreparedinaccordancewiththedisclosurerequirementsofthe AlternativeInvestmentMarket("AIM")RulesandtherecognitionandmeasurementsofInternationalFinancialReporting Standards("IFRS"),asadoptedbytheEuropeanUnion(EU).
Theinterimreportdoesnotincludealloftheinformationrequiredforfullannualfinancialstatements.
The accounting policies adopted by the Group in the preparation of its 2016 interim report are those which the Group currently expectstoadoptinitsannualfinancialstatementsfortheyearending30November2016andareconsistentwiththosedisclosed intheannualfinancialstatementsfortheyearended30November2015.
The financial information for the period ended 31 May 2016 does not constitute the Company's statutory accounts. The statutory accounts for the year ended 30 November 2015 have been delivered to the Registrar of Companies in England and Wales. The auditorhasreportedonthoseaccounts.Itsreportwasunqualified,didnotdrawattentiontoanymattersbywayofemphasis,and didnotcontainastatementunderSection498(2)or498(3)oftheCompaniesAct2006.Thefinancialinformationforthehalfyear ended31May2016and31May2015isunaudited.
TheAIMRulesforCompaniesdonotrequireIAS34"InterimFinancialReporting"tobeapplied;thereforeithasnotbeenusedinthepreparationofthisinterimreport.
Goingconcern
ThefinancialstatementsoftheGrouphavebeenpreparedonagoingconcernbasis.Inmakingthisassessment,theDirectors haveprepareddetailedfinancialforecastsfortheperiodtoNovember2018whichconsiderthefundingandcapitalpositionof theGroup.Thoseforecastsmakeassumptionsinrespectoffuturetradingconditions,notablytheeconomicenvironmentand its impact on the Group's revenues and costs. In addition to this, the nature of the Group's business is such that there can be considerablevariationinthetimingofcashinflows.Theforecaststakeintoaccountforeseeabledownsiderisks,basedonthe informationthatisavailabletotheDirectorsatthetimeoftheapprovalofthesefinancialstatements.
CertainactivitiesoftheGroupareregulatedbytheFinancialConductAuthority(FCA)whichisthestatutoryregulatorforfinancial servicesbusinessintheUKandhasresponsibilityforpolicy,monitoringanddisciplineforthefinancialservicesindustry.TheFCA requires the Group's capital resources to be adequate; that is sufficient in terms of quantity, quality and availability, in relation to its regulated activities. The Directors monitor the Group's regulatory capital resources on a daily basis and they have developed appropriate scenario tests and corrective management plans which they are prepared to implement to address any potential deficitasrequired.Theseactionsmayincludecostreductions,regulatorycapitaloptimisationprogramsorfurthercapitalraising. TheDirectorsconsiderthat,takingaccountofforeseeabledownsiderisks,regulatorycapitalrequirementswillcontinuetobemet.
TheDirectorsmostrecentlyrenewedtheGroup'sbankingfacilitiesinFebruary2016.Asanevergreenfacilitythereisno requirementtoupdatetheagreementannually,althoughaformalreviewoffacilitiesisundertakenatleastannually.
2. SEGMENTAL REPORTING 
The Group has twooperating segments.
The Private Wealth Management division offers investment management advice and services to individuals and contains the Group'sWealthPlanningbusiness,givingadviceonandactingasintermediaryforarangeoffinancialproducts.TheCorporate Broking division provides corporate finance and corporate broking advice and services to companies and acts as Nominated Adviser to clients listed on AIM. It also contains the Group's Institutional Sales and Research business, which carries out stockbrokingactivitiesonbehalfofcompaniesaswellasconductingresearchintomarketsofinteresttoitsclients.
The segment "Other Group companies" includes WH Ireland Group plc, WH Ireland (IOM) Limited, Readycount Limited and Stockholm Investments Limited.


AllsegmentsarelocatedintheUKortheIsleofMan.Eachreportablesegmenthasasegmentmanager,whoisdirectlyaccountable toandmaintainsregularcontactwith,theCEO.
NocustomerrepresentsmorethantenpercentoftheGroup'srevenue.
ThefollowingtablesrepresentrevenueandprofitinformationfortheGroup'sbusinesssegments.

Private Wealth Management
'000
Corporate Broking
'000
Head Office
'000
OtherGroup companies
'000
Group
'000
AS AT 31 MAY 2016
REVENUE
8,530
3,124
-
306
11,960
Segmentresult
(911)
(1,027)
-
272
(1,666)
Executive Board cost
186
186
(456)
84
-
Investment gains
-
7
-
-
7
Fair value gains/(losses) oninvestments
30
(68)
-
-
(38)
Financeincome
6
-
-
1
7
Financeexpense
(82)
(4)
-
(10)
(96)
(Loss)/profit beforetax
(771)
(906)
(456)
347
(1,786)
Taxincome/(expense)
144
165
-
(40)
269
(Loss)/profit for theperiod
(627)
(741)
(456)
307
(1,517)

Private Wealth Management
'000
Corporate Broking
'000
Head Office
'000
OtherGroup companies
'000
Group
'000

AS AT 31 MAY 2015
REVENUE
10,915
4,869
-
158
15,942
Segmentresult
501
(283)
-
98
316
Executive Boardcost
169
169
(454)
116
-
Investmentgains/(losses)
(8)
(90)
-
-
(98)
Fairvaluegains/(losses)oninvestments
(11)
396
-
-
385
Financeincome
15
-
-
1
16
Financeexpense
(11)
(4)
-
(11)
(26)
Profit/(loss) beforetax
655
189
(454)
203
593
Tax(expense)/income
(22)
(130)
-
11
(141)
Profit/(loss) for theperiod
633
59
(454)
214
452
Private Wealth Management
'000
Corporate Broking
'000
Head Office
'000
OtherGroup companies
'000
Group
'000
AS AT 30 NOVEMBER 2015(AUDITED)
REVENUE
20,594
9,936
-
354
30,884
Segmentresult
445
414
(1,200)
289
(52)
Executive Boardcost
286
286
(786)
214
-
Investmentgains
(8)
(82)
-
1
(89)
Fairvaluegains/(losses)oninvestments
(12)
(173)
-
-
(185)
Financeincome
19
-
-
2
21
Financeexpense
(13)
(6)
-
(22)
(41)
Profit/(loss) beforetax
717
439
(1,986)
484
(346)
Taxexpense
(175)
(107)
-
(53)
(335)
Profit/(loss) for theyear
542
332
(1,986)
431
(681)

3. INVESTMENTS

Half-yearended
31 May2016
'000
Half-yearended
31 May2015
'000
Yearended 30November2015
(audited)
'000
AVAILABLE FOR SALEINVESTMENTS



Fair value:unquoted
40
93
40
Total
40
93
40
OTHER INVESTMENTS
Fair value:quoted
102
196
140
Fair value:warrants
85
167
180
Total
187
363
320
Totalinvestments
227
456
360
Quoted and unquoted investments include equity investments other than those in subsidiary undertakings. Warrants may be received during the ordinary course of business; there is no cash consideration associated with the acquisition. 
Fairvalue,inthecaseofquotedinvestments,representsthebidpriceatthereportingdate.Inthecaseofunquotedinvestments, the fair value is estimated by reference to recent arm's length transactions. The fair value of warrants is estimated using established valuationmodels.

Half-yearended
31 May2016
'000
Half-yearended
31 May2015
'000
Yearended 30November2015
(audited)
'000
TRADING INVESTMENTS



Listed investments
286
261
1,932
Total
286
261
1,932
Investments are measured at fair value, which is determined directly by reference to published prices in an active market where available.
4. CASH, CASH EQUIVALENTS AND BANK OVERDRAFTS
Forthepurposesofthestatementofcashflows,cashandcashequivalentscomprisecashinhandanddepositswithbanksand financialinstitutionswithamaturityofuptothreemonths.
Cashandcashequivalentsrepresentthe Group's moneyandmoneyheldforsettlementofoutstanding transactions.
Moneyheldonbehalfofclientsisnotincludedinthestatementoffinancialposition.Clientmoneyat31May2016was111.6m (31May2015:130.8m;30November2015:97.6m).
5. SHARE CAPITAL 
The total number of authorised ordinary shares is 34.5 million shares of 5p each (31 May 2015 and 30 November 2015: 34.5 million).Thetotalnumberofissuedordinarysharesis25.8millionsharesof5peach(31May2015:24.4millionand30November 2015:24.5million).
On23rdFebruary2016,WHIrelandGroupplcplaced1,193,000ordinarysharesfromitsauthorisedsharecapitalatanissueprice of90p.


6. EARNINGS PER SHARE 
Basicearningspershare(EPS)iscalculatedbydividingtheprofitattributabletoequityholdersoftheCompanybytheweighted averagenumberofordinarysharesinissueduringtheyear,excludingordinarysharespurchasedbytheCompanyandheldas treasuryshares.
Diluted EPS is the basic EPS, adjusted for the effect of conversion into fully paid shares of the weighted average number of all dilutiveemployeeshareoptionsoutstandingduringtheperiod.At31May2016:nil(31May2015:34,838and30November2015: nil)optionswereexcludedfromtheEPScalculationastheywereanti-dilutive.Inaperiodwhenthecompanypresentspositive earningsattributabletoordinaryshareholders,anti-dilutiveoptionsrepresentoptionsissuedwheretheexercisepriceisgreater thantheaveragemarketpricefortheperiod.
Reconciliationoftheearningsandweightedaveragenumberofsharesusedinthecalculationsaresetoutbelow.

Half-yearended
31 May2016
'000
Half-yearended
31 May2015
'000
Yearended 30November2015
(audited)
'000
Weightedaveragenumberofsharesinissueduringtheperiod
25,480
24,268
24,287
Effectofdilutiveshareoptions
764
611
705

26,244
24,879
24,992

'000
'000
'000
Earnings attributable to ordinaryshareholders
(1,517)
452
(681)
BASICEPS



Continuingoperations
(5.95)p
1.86p
(2.81)p
DILUTEDEPS



Continuingoperations
(5.95)p
1.82p
(2.81)p
7. DIVIDENDS 
Afinaldividendof2.0ppershare,inrespectoftheyearended30November2014,wasapprovedbyshareholdersattheAnnual General Meeting held on 26 March 2015. This was subsequently paid on 10 April 2015. No interim dividend has been paid or proposedinrespectofthecurrentfinancialyear(2015:nil).
8. SUBSEQUENT EVENTS
On 2 June 2016, WH Ireland Group plc announced that it had executed a seven year agreement with SEI Investments (Europe) Limited to outsource its Private Wealth Management back office operations. In addition, and as referenced in the Chairman's statement, the Group has agreed Heads of Terms for its freehold property in Manchester. Accordingly as at 31 May 2016, it is classified as assets held for sale. 
9. AVAILABILITY OF INTERIM REPORT
CopiesofthisReportcanbedownloadedfromtheCompany'swebsiteatwww.wh-ireland.co.uk

Independent review to WHIreland
INTRODUCTION 
Wehavebeenengagedbythecompanytoreviewtheinterimfinancialinformationintheinterimreportforthesixmonthsended 31May2016whichcomprisestheConsolidatedstatementofcomprehensiveincome,Consolidatedstatementoffinancialposition, Consolidatedstatementofcashflows,Consolidatedstatementofchangesinequityandrelatednotes.
Wehavereadtheotherinformationcontainedintheinterimreportandconsideredwhetheritcontainsanyapparentmisstatements ormaterialinconsistencieswiththeinformationintheinterimfinancialinformation.
DIRECTORS' RESPONSIBILITIES 
Theinterimreport,includingtheinterimfinancialinformationcontainedtherein,istheresponsibilityofandhasbeenapproved bythedirectors.ThedirectorsareresponsibleforpreparingtheinterimreportinaccordancewiththerulesoftheLondonStock ExchangeforcompaniestradingsecuritiesonAIMwhichrequirethatthehalf-yearlyreportbepresentedandpreparedinaform consistentwiththatwhichwillbeadoptedinthecompany'sannualaccountshavingregardtotheaccountingstandardsapplicable tosuchannualaccounts.
OUR RESPONSIBILITY
Ourresponsibilityistoexpresstothecompanyaconclusionontheinterimfinancialinformationintheinterimreportbasedonour review.
Our report has been prepared in accordance with the terms of our engagement to assist the company in meeting the requirements of the rules of the London Stock Exchange for companies trading securities on AIM and for no other purpose. No person is entitled torelyonthisreportunlesssuchapersonisapersonentitledtorelyuponthisreportbyvirtueofandforthepurposeofourtermsof engagementorhasbeenexpresslyauthorisedtodosobyourpriorwrittenconsent.Saveasabove,wedonotacceptresponsibility forthisreporttoanyotherpersonorforanyotherpurposeandweherebyexpresslydisclaimanyandallsuchliability.
SCOPE OF REVIEW 
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, ''Review of InterimFinancialInformationPerformedbytheIndependentAuditoroftheEntity'',issuedbytheAuditingPracticesBoardforuse intheUnitedKingdom.Areviewofinterimfinancialinformationconsistsofmakingenquiries,primarilyofpersonsresponsiblefor financialandaccountingmatters,andapplyinganalyticalandotherreviewprocedures.Areviewissubstantiallylessinscopethanan audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not expressanauditopinion.
CONCLUSION 
Basedonourreview,nothinghascometoourattentionthatcausesustobelievethattheinterimfinancialinformationintheinterim reportforthesixmonthsended31May2016isnotprepared,inallmaterialrespects,inaccordancewiththerulesoftheLondonStock Exchange for companies trading securities onAIM.
BDOLLP
Chartered Accountants 
London
United Kingdom
20 July2016
BDOLLPisalimitedliabilitypartnershipregisteredinEnglandandWales(withregisterednumberOC305127).

Advisers
AUDITORS
BDOLLP
55 Baker Street London
W1U7EU
BANKERS
Bank ofScotland
2nd Floor, 
1 LochrinSquare 92-98 Fountainbridge
Edinburgh,EH39QA
BROKER
WH Ireland Limited
11 St James'sSquare Manchester, M26WH
COMPANY NUMBER 
3870190
COMPANY SECRETARY AND REGISTERED OFFICE 
Katy Mitchell 
5thFloor
24 Martin Lane London, EC4R0DR
FINANCIAL PR ADVISERS
Tim Robertson
Novella Communications
Garrick House
1 Garrick Road
London, W1J 7AF
NOMINATED ADVISER 
Spark Advisory Partners 
5 St. John's Lane London, EC1M4BH
REGISTRARS
Neville RegistrarsLimited NevilleHouse
18LaurelLaneHalesowen
WestMidlands,B633DA


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