(Alliance News) - Oberon Investments Group PLC on Tuesday said it would swing to profit in 2024, following the promising results of its half-year report.

The London-based investment management, wealth planning and corporate broking group's revenue rose to GBP3.4 million for the six months ended September 30, up 28% from GBP2.6 million year-on-year.

The group says this was achieved despite "continued difficult conditions in the corporate broking market", and a 33% decline in revenue for its Oberon Capital division.

The group reduced its pretax loss to GBP1.6 million from GBP1.7 million last year, and expects to swing to profit during 2024 thanks to its fee-earning funds under management and administration. Since September 2022, these have increased by over GBP170.0 million.

In June, Oberon acquired a 63% majority stake in Logic Investments Ltd, a provider of custody and administration services to investment managers and financial institutions. This deal was funded through the issue of 50.1 million new Oberon shares. In September, Oberon purchased a further 6%, bringing the total stake in Logic Investments to 69%.

In December, the group also completed its acquisition of Nexus Investment Evergreen Enterprise Investment Scheme Scale-Up Fund from Nexus Central Management Services Ltd. The acquisition was funded through the issue of GBP7.5 million new Oberon shares. The Nexus EIS fund has a 15-company portfolio across digital, data, education technology and health, which the company said, "strengthens Oberon's offering to investors who wish to benefit from EIS tax relief and companies seeking EIS investment."

Chief Executive Officer Simon McGivern said: "Our strategy of focusing on fee earning FUMA is bearing fruit, as we continue to see strong growth and inflows in this area. There is often an element of delay, as new teams join and incur overhead prior to establishing revenues, however there is long term value in the strengthening of our teams and the accompanying fee earning FUMA. The Oberon brand is growing in the market, which should continue to help attract high quality teams and professionals."

Shares in Oberon were untraded at 3.58 pence each in London on Thursday morning.

By Hugh Cameron, Alliance News reporter

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