The broker-dealer PhillipCapital UK has agreed to buy out London-listed Walker Crips Group in an all-cash transaction valuing the struggling wealth management firm at £5.96 million, the companies said today (Monday).

110-Year-Old Investment Firm Just Got Bought for Pennies

The Singapore-owned firm offered 14 pence per share, an 86.7% markup over Walker Crips' closing price of 7.5 pence on Thursday. The board unanimously backed the deal, which will pull Walker Crips off the London Stock Exchange early next year.

Walker Crips has been bleeding cash while trying to clean up legacy compliance problems and adapt to tougher UK regulations. The company took a £5 million emergency loan from PhillipCapital's parent firm in July after racking up losses remediating old client issues. That loan comes due in January, and Walker Crips can't pay it back.

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The move comes at a time when Phillip Securities, one of PhillipCapital’s units, is preparing to expand into institutional foreign exchange trading, with the firm selecting Integral to provide the technology needed to support larger clients and higher volumes.

The latest steps build on Phillip Securities’ existing equity CFD business and mirror similar technology deployments at its affiliates, Phillip Nova and Phillip Securities Japan, both of which already operate on Integral’s systems.

Shares Stuck Below Offer Price for Months

The stock hasn't traded near 14 pence since Walker Crips disclosed its annual losses and the bailout loan back in July. Average daily volume over the past year was just 30,481 shares, barely 0.07% of shares outstanding, making it tough for investors to exit positions.

"The offer from PhillipCapital represents an attractive premium to Walker Crips' current share price and offers shareholders the certainty of cash in the near term, whilst also mitigating the risk associated with the repayment of the Working Capital Facility in January 2026," said Mark Nelligan, a non-executive director.

Without the buyout, Walker Crips would have been forced into a deeply discounted rights offering to repay the loan. That would have diluted existing shareholders, potentially by a lot, since PhillipCapital already owns 29% and could have mopped up shares other investors couldn't afford to buy.

Regulatory Squeeze Pushed Firm to the Brink

The 110-year-old firm has been struggling with the costs of meeting modern compliance standards. New consumer protection rules and interest rate regulations on client cash hit profits hard. Walker Crips reported a £3.64 million operating loss for the year ended March 31, compared to a £60,000 loss the prior year, on roughly flat revenue of £31.35 million.

The company discovered a legacy systems problem that may have misstated client account information related to fund unit types. That could affect some clients' tax liabilities. An internal investigation started in June is still ongoing.

PhillipCapital, which has held a stake in Walker Crips since 1993 and has two board representatives, plans to inject at least £7 million into the business after taking it private. The buyer wants to focus on Walker Crips' investment management and structured products units while possibly selling off other pieces.

Job Cuts Expected Despite Growth Plans

The new owner expects to cut roughly 10% of Walker Crips' workforce within a year, eliminating redundant back-office roles and functions tied to being a public company. PhillipCapital said overall headcount should grow over time as it tries to scale up the business.

"With the support of the wider PhillipCapital Group, we believe that Walker Crips will be able to fully capitalize on the undoubted market opportunity," said Linus Lim, a director at PhillipCapital.

The deal requires approval from 75% of independent shareholders at a court-convened meeting and from the Financial Conduct Authority. PhillipCapital's concert party can't vote on the scheme itself but will vote in favor of related resolutions at a separate general meeting.

Completion is expected in the first quarter of 2026. To give the deal time to close, PhillipCapital extended the loan repayment deadline from Jan. 31 to Feb. 28, contingent on shareholders approving the buyout.