Alexander Forbes reported a 13% spike in operating expenses when it presented its full-year results last week. The key drivers were claims, bad debt, professional fees paid to consultants to help previous CEO Andrew Darfoor put together his Ambition 2022 Strategy, and the termination of a IT contract.

While a lot of these costs were one-offs, Alexander Forbes shareholders may be justifiably worried about the recurring items. These include IT costs that increased 25% in the past financial year and personnel costs that accounted for 59% of the pension fund administrator’s total administration expenses.

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