Troubled wealth manager and financial services firm WH Ireland has sold its capital markets division to Zeus Capital to help stabilise its finances.

The sale amount has not been disclosed but earlier reports put the sale amount at up to £5m.

Phillip Wale, WH Ireland chief executive, said: “This transaction secures an outcome which the directors believe is beneficial in respect of the overall strategy of the group.”

The company said the sale will help to reduce the firm’s liabilities and its working and regulatory capital requirements, while increasing potential cash inflows when deferred consideration is paid following the first anniversary of completion of the deal.

The majority of WH Ireland's clients have successfully transferred to Zeus Capital Limited, the company said.

The key assets being acquired by Zeus include the corporate client contracts of the capital markets division, the employees, the key supplier contracts, the Leeds and Bristol leasehold premises and the transfer of high net worth clients, together with their execution-only custody accounts valued at £600m.

Last month the company said the benefits of cost cutting and the sale of the capital markets division should "enhance the prospects" for the WH Ireland wealth management division.

There is still some way to go, however. Assets under management in the wealth management division have fallen from £1.4bn in March 2023 to £1.2bn in March this year. However, the group had cash balances of £5.8m as of April 2024.

In its last interim results published in December WH Ireland reported bigger losses and a sharp drop in revenue.

The firm saw a major board shake-up last November. That followed a £5m rescue deal thrashed out in the summer which saved the company. In August WH Ireland shareholders had backed the fund-raising move to help stabilise finances at the troubled firm. WH Ireland warned that it was in danger of being wound up if the deal had not gone ahead.

As part of the cost-cutting deal, chief executive Phillip Wale took a 30% pay cut in return for share options. Other senior executives, including head of wealth management Michael Bishop, also agreed to take pay cuts.

In the previous months the company cut its workforce by 45 to 111 as it strived to cut costs. The firm's discussions with the FCA about its financial position could have resulted in the company being wound up if the summer share placing was unsuccessful. In the event it was successful.