Struggling London-listed wealth manager Walker Crips Group has reported a significant widening of its losses for the first half of the financial year, just weeks after agreeing to a takeover by a Singaporean rival.
Financial Performance Plummets
The firm revealed a pre-tax loss of £7 million for the six months to September 30, 2025. This marks a sharp deterioration from the £1.5 million loss recorded in the same period a year earlier, meaning losses have more than quadrupled. Group revenues also fell, declining by 7.3% to £14.6 million.
In its results statement, the company attributed the poor performance to a combination of "internal challenges and broader economic uncertainty." The figures were further impacted by a substantial £4.4 million goodwill write-down.
Takeover Deal and Transitional Challenges
The bleak financial update follows the announcement in November that Walker Crips had agreed to a £5.6 million acquisition by Singapore-based financial services group PhillipCapital, which already owns approximately 29% of the company. The offer values Walker Crips shares at 14p each.
PhillipCapital had previously provided a £5 million emergency loan to the wealth manager in July 2025. Mark Nelligan, interim chairman of Walker Crips, stated that against the backdrop of ongoing challenges, the independent directors recommended the takeover, which was agreed on November 24.
The company also cited specific operational hurdles that hampered performance. These included higher costs from regulatory upgrades and the complex migration of its investment management arm's custody, trading, and settlement operations to BNY Pershing. This transition demanded significant management focus, diverting resources from growth initiatives and affecting expected revenues.
Path Forward and Cost-Cutting Plans
Despite the negative results, which Mr Nelligan described as "not entirely unexpected given the transition we are in," the firm outlined plans for a turnaround. He pointed to several ongoing initiatives aimed at stabilising the business.
These initiatives include:
- Strengthened cost management efforts.
- Comprehensive tariff reviews.
- New structured product initiatives, including a structured product fund.
- Continuous process improvements.
The company has identified a range of cost-cutting measures that it expects will start to deliver tangible results in 2026. The impending takeover by PhillipCapital is now seen as a pivotal step for the future of the historic wealth management group.
