The sell off, to Zeus Capital, is expected to be completed by mid-July.

The company said the sale would help reduce debts, strengthen its finances and give its growing wealth management division a boost.

In a statement the company said: “The sale of the Capital Markets Division will, should the recent market improvements continue, enhance the prospects for the WH Ireland Wealth Management Division.”

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. 

In a trading update issued alongside the sale details, the firm said market conditions have continued to be “challenging” but the directors believe that the combination of improving market conditions, 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 has 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 City of London-based firm said half year revenue to the end of September declined by £3.6m year on year from £14.3m in 2022 to £10.7m in 2023. For the year ended March the firm made a pre-tax loss of £1.8m compared to a profit of £8,000 the previous year.

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.

Assets under management in the Wealth Management Division at 31 March 2024 were £1.2 billion (31 March 2023: £1.4 billion).