Despite the new business enquiry pipeline being at an historically high level (c.20% above last year), trading in H1 has been weaker than expected due to both slower conversion of clients in South-East Asia and a lower level of activity in the Middle East. A number of Expert Witness/Dispute projects that were expected to convert in H1 have been temporarily delayed or deferred. Whilst there are significant opportunities for the Group in H2 and management remains confident of converting these leads, PBT in the current year is now expected to be around £3.5m vs. our previous forecast of £4.4m. Whilst this is a disappointment, we expect earnings to return to growth next year, supported by a strong business pipeline and cost saving initiatives.
