**Summary of Walker Crips Group plc Half-Year Report (Six Months Ended 30 September 2025)**
**Financial Performance**
**Revenue Decline**Total revenues decreased by 7.3% to £14.6 million (2024: £15.8 million), primarily due to reduced managed interest retention and Structured Products fees.
**Gross Profit**Gross profits fell by 7.4% to £12.1 million (2024: £13.1 million).
**Operating Loss**Reported an operating loss of £6.9 million (2024: £1.682 million). Adjusted for exceptional items (including £4.388 million goodwill impairment), the adjusted operating loss was £2.512 million (2024: £1.682 million).
**Loss Before Tax**Loss before tax was £6.324 million (2024: £1.452 million). Adjusted loss before tax was £2.582 million (2024: £1.452 million).
**Cash Position**Cash and cash equivalents stood at £9.0 million (2024: £12.8 million), including £2.5 million drawn from a loan facility.
**Assets Under Management (AUM)**AUM increased by 9.3% to £3.0 billion (March 2025: £2.7 billion). Total Assets Under Management and Administration (AUMA) rose by 5.3% to £4.9 billion (March 2025: £4.6 billion).
**Operational Highlights**
**Internal Challenges**High costs related to CASS and regulatory enhancements, as well as upfront costs for the migration of WCIMs operations to BNY Pershing, impacted performance.
**Strategic Initiatives**Strengthened cost management, tariff reviews, new structured products initiatives, and process improvements are underway to turn around performance.
**Subsidiary Performance**The Financial Planning subsidiary returned to profitability after five years of reorganization, while Barker Poland Asset Management and the Pensions subsidiary remain stable.
**Recommended Acquisition**
**PhillipCapital UK Ltd Offer**On 24 November 2025, PhillipCapital UK Ltd (a subsidiary of Phillip Brokerage Pte Ltd) made a recommended cash offer to acquire Walker Crips Group plc for £5.6 million, valuing the company at 14 pence per share (approximately 87% <mark style="background-color:yellow">above</mark> the last closing price of 7.5 pence).
**Outlook**
**Operational Strengthening**Investments in operational foundations, including the BNY Pershing migration, are expected to reduce costs, enhance control, and create a scalable model.
**Growth Focus**Strategic initiatives include launching a structured product fund, hiring quality investment managers, and managing costs effectively.
**No Interim Dividend**Due to trading performance, no interim dividend was proposed.
**Key Risks and Contingencies**
**Contingent Liabilities**Ongoing investigations into legacy systems issues and client suitability matters may result in future liabilities, though outcomes remain uncertain.
**Regulatory Capital**Stress scenarios indicate potential breaches of regulatory capital thresholds, but management actions are expected to mitigate these risks.
**Conclusion**
Walker Crips Group plc faced a challenging first half of 2025, marked by revenue declines, operational costs, and exceptional charges. However, strategic initiatives and the proposed acquisition by PhillipCapital UK Ltd signal potential for future stabilization and growth. The company remains focused on strengthening its operational foundation and driving sustainable growth.
| Metric | Sep 2025 (£'000) | Sep 2024 (£'000) | Mar 2025 (£'000) | Year-on-Year Change (Sep 2025 vs Sep 2024) |
|---|---|---|---|---|
| Total Revenues | 14,646 | 15,794 | 31,345 | -7.3% |
| Gross Profits | 12,095 | 13,060 | 25,830 | -7.4% |
| Operating Loss | (6,900) | (1,682) | (3,644) | Worsened by £5,218 |
| Loss Before Tax | (6,970) | (1,452) | (3,275) | Worsened by £5,518 |
| Cash and Cash Equivalents | 8,999 | 12,794 | 12,502 | Decreased by £3,795 |
| Assets Under Management (AUM) | 3,000,000 | 2,700,000 | 2,700,000 | Increased by 9.3% |
| Total Assets Under Management and Administration (AUMA) | 4,900,000 | 4,600,000 | 4,600,000 | Increased by 5.3% |
| Loan Facility (Debt) | (2,500) | - | - | New debt of £2.5m |
| Net Assets | 12,363 | 20,126 | 18,687 | Decreased by £7,763 |