Oberon Investments - Half-year Report

18 December 2024

("Oberon", or the "Company", or the "Group")

Interim Results - Strong period, first half revenues up 74%, ahead of guidance, new teams and industry leaders joining the Oberon brand and on track to complete a successful year

Oberon Investments Group plc (AQSE: OBE), the boutique investment management, wealth planning and corporate broking group, is pleased to announce its unaudited results for the six months ended 30 September 2024 (the 'period').

Group Highlights

·    Driven by growth from all three divisions, revenues up by 74% to £4.8m (HY24: £2.7m adjusted for subsidiary[1]).

·    Improvement in EBITDA loss in line with growth business model at £0.96m (HY24: £1.60m), despite up-front costs of new teams (prior to recognising their revenue).

·    Successful oversubscribed fundraising completed in August raising £2.5 million.

·    On track to surpass our target to deliver 30% like-for-like revenue growth for this financial year.

Simon McGivern, CEO of Oberon Investments, said:

"We are delighted to report strong revenue growth, up 74%, reflecting the success of our ongoing strategic initiatives and the trust our clients place in our bespoke investment advice and personalised approach. All three of our divisions-Investment Management, Wealth Planning, and Corporate Broking/Private Ventures- contributed, underscoring the strength of our synergistic business model and putting us on track to surpass our target to deliver 30% like for like growth in this financial year.

In August we raised new equity capital, in an oversubscribed fund raising, to support our continued investment in new wealth management teams and individuals with established client bases. The market is ripe for change, and we are providing an energised, ambitious and refreshing alternative for both advisors and clients."

Investment Management

·    New teams joining in the period from Investec and LGT have together already brought in considerable FUMA.

·    Star fund manager Richard Penny signed to the Oberon brand together with his team and portfolio of funds.

·    Secured Adam Hughes as head of distribution, previously responsible for growing sales at Neptune and Gresham House.

·    Team is now 17 Investment Managers strong.

·    Successful relocation to new larger offices in St James's, London.

Wealth Planning

·    Smythe House, the Group's financial planning division, delivered revenue growth up 300% measured against a strong performance in 2023.

·    At the heart of the business is the service model focused on education and governance, targeting entrepreneurial business founders and their families as they either cascade their businesses through the generations or exit.

·    The business is growing organically whilst investing in developing strong front and back-office teams to underpin further expansion.

Corporate Broking and Private Ventures

·    Corporate Broking expanded its market presence and enjoyed a strong first six months with revenues increasing by over 120%.

·    Retained listed client base increased to 21.

·    Successfully completed 7 transactions including 2 IPO's and 3 private fund raises.

·    Healthy pipeline of opportunities going into 2025.

·    Private Ventures, sources capital for early-stage specialist AI/SaaS businesses, and has developed a portfolio of well-led, highly scalable, growth businesses, all seeking to become industry leaders. Expecting to complete a series of larger scale fund raises in 2025.

Outlook

·    Current trading on track to surpass our target to deliver 30% like for like growth in this financial year

·    Launch of Oberon AIM VCT expected in Q2/Q3 2025.

·    Currently in talks with multiple teams and individuals with regard to joining the Oberon brand.

·    Growing understanding amongst customers and market participants of the Oberon approach to providing personalised advice and services.

Enquiries:

Chief Executive's Statement

Introduction

I am pleased to present the interim results for Oberon Investment Group. They reflect the significant progress we have made across all three divisions of our business: Investment Management, Wealth Planning, and Corporate Broking/Private Ventures. Our strategic focus on growth, innovation, and talent acquisition has delivered another period of strong performance, underscoring our position as a dynamic and synergistic investment group. Importantly, the investments in senior talent made in the prior year, following a period of bedding in, are now generating revenues at anticipated levels or above.

Group Performance

Driven by growth across all divisions, revenues increased by 74% to £4.8m (HY24: £2.7m adjusted for a change in accounting treatment for Logic Investments Ltd and one-off revenue in HY'24). While we recorded an EBITDA loss of £0.96m (HY24: £1.6m), this is in line with our growth-focused business model and reflects strategic investments made to drive long-term success, as well as costs incurred for various new teams (prior to them generating revenue, which should be seen in the second half of the year).

A key highlight of the period was the successful, oversubscribed fundraising completed in August, raising £2.5 million. The strong interest in the fundraising as well as its outcome demonstrates the confidence our current and new shareholders have in our vision and strategy. The additional capital enables us to continue investing in talent, infrastructure, and new opportunities.

The total number of employees rose to 88 during the period, reflecting our commitment to attracting top-tier talent to support our expanding operations. Trading since the half-year has continued to be encouraging, giving us further confidence as we move into the second half of the year.

Divisional Review

Investment Management

Our Investment Management division has had an excellent first half, with strong inflows of Funds under Management and Administration (FuMA). Key to this has been the successful integration of the three teams who joined in 2023 from WH Ireland, Atomos and JM Finn, all of whom have settled well into the business, bringing industry experience and developing their respective client bases, engaging clients both old and new. In the period under review, we have welcomed teams and individuals from Investec and LGT and they too have settled quickly and despite their recent arrival have already added considerable AUM.

The team now includes 17  Investment Managers. Post the half-year, we announced the appointment of star fund manager Richard Penny, along with his team and portfolio of funds, marking a significant milestone for Oberon, strengthening our offering and significantly enhancing our market presence. The quality of the personnel joining the firm reflects well on the momentum in the business and the appeal of being able to offer an alternative to the commoditised investment management on offer from our larger competitors.

With regard to our subsidiary, Logic Investments, we are still considering strategic options.  Progress has been slower in this division and we expect to update further in 2025.

There has been continued flow into the Margetts Tempus Growth unit trust, an investment mandate won in August 2023. Looking ahead, in 2025 we expect to launch a unique Business Relief Service for clients of intermediaries and relaunch our Oberon AIM VCT fund.

Wealth Planning

Our independent wealth planning division, Smythe House, delivered further revenue growth, up 300% year on year. This success reflects the strength of the Smythe House team and the increasing demand for careful financial planning amid current fiscal changes and future uncertainties. The business is successful and growing organically whilst investing in developing strong front and back-office teams to order to sustain future expansion. At the heart of the business is the service model focused on education and governance, targeting entrepreneurial business founders and their families as they either cascade their businesses through the generations or exit.

Corporate Broking & Private Ventures

The Corporate Broking & Private Ventures division enjoyed a productive first half, with revenues increasing by over 120%. The number of listed broking clients currently stands at 21, underscoring the strong demand for our differentiated model which enables us to focus on raising new capital and providing corporate advice whilst using a suite of high-quality partners to deliver a full service offering to our clients. The team successfully completed 7 transactions including 2 IPO's, 2 quoted fund raises and 3 private fund raises during the period. The pipeline for 2025 is significantly ahead of our expectations 6 months ago and we are therefore well placed to continue to grow the business.

Private Ventures, sources capital for early-stage specialist AI/SaaS businesses, and has developed a portfolio of well-led, highly scalable, growth businesses, all seeking to become industry leaders. 2025 is expected to be an active period with a series of larger scale fund raises planned.

Outlook

Looking ahead, we are confident about our prospects for the remainder of the year and beyond. The first two months of trading since the half-year have been positive, and we are on track to surpass our target to deliver 30% like-for-like growth in this financial year.

We have multiple teams and individuals in varying stages of joining the Oberon brand. This further influx of high-quality talent will be the basis for our continued growth into 2025/26 and beyond.

I would like to thank our shareholders for their continued support, our clients for their trust, and our employees for their dedication and hard work. Together, we are building a business of significant scale and capability, and I am confident in our ability to deliver sustainable growth and long-term value.

Simon McGivern

Chief Executive Officer

18 December 2024

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the six-month period ended 30 September 2024

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

CONSOLIDATED STATEMENT OF CASH FLOWS