(Alliance News) - Oberon Investments Group PLC on Friday said it swung to an interim loss, as revenue fell and operating expenses increased, but it expects a return to growth thanks recently signed contracts.

The London-based boutique investment management, wealth planning and corporate broking group said pretax loss in the six months that ended September 30 was GBP1.7 million, swinging from a profit of GBP128,000 a year earlier.

Revenue fell by 24% to GBP2.6 million from GBP3.4 million, while operating expenses widened by 14% to GBP4.1 million from GBP3.6 million. Oberon also reported a loss on investments of GBP178,000, swinging from a gain of GBP289,000.

Loss before interest, tax, depreciation and amortisation was GBP1.3 million, swinging from a profit of GBP6,000, which Oberon Investments said reflected increased investment in platform, systems and controls for the future.

Net assets increased by 30% to GBP4.8 million from GBP3.7 million, while net cash was up 53% to GBP2.3 million from GBP1.5 million.

Oberon said the market fall was the driver for its trading performance, noting the FTSE 250 index of London mid-cap stocks fell by 19% during the half-year period, though it said this was offset by new client wins and inflow of assets. Its number of corporate broking clients rose to 22 from 15 during the six months.

Following the half-year period, Oberon signed contracts with a number of new teams, which it expects to add further fee earning revenue and funds under management and administration to its existing funds. Alongside cost-saving initiatives, it said management expects growth to resume during 2023.

"While the general corporate market has been weak, the corporate broking division has continued to increase its retained client base and recurring fee revenue for this division has increased considerably. We expect this growing client base to generate strong revenues from initial public offering and secondary fundraises next year as markets recover," said Chief Executive Officer Simon McGivern.

"We remain extremely positive about the prospects for Oberon and are looking forward to announcing further team wins and progress across other divisions in the coming months."

Shares in Oberon were quoted at 3.5 pence each on AQSE in London on Friday morning, having last traded on Wednesday afternoon at 3.6p.

By Greg Rosenvinge, Alliance News reporter

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