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Lighthouse Group

  • BY: Andrew Hore |
  • POSTED: 27/03/2011 |

IFA Lighthouse grew its profit and boosted is balance sheet during 2010.

Revenues from continuing operations grew from £60.7m to £63.1m in 2010. Underlying profit grew from £93,000 to £293,000.

Lighthouse says that it is ready for the beginning of the new regime outlined in the Retail Distribution Review. The group has been reorganised into three divisions: National (the company’s own IFAs), Network (the business covering the network of independent IFAs) and Specialist Services. All three divisions grew revenues in 2010. The company’s adviser numbers are flat but the number of advisers covered by the network is falling. That reflects a general decline in numbers in the market as the regulatory burden becomes tougher and this decline in numbers is expected to continue.

Lighthouse sold its pension administration business to pension specialist Mattioli Woods for £2.14m last summer. Net cash was £13.9m at the end of 2010. That gives Lighthouse plenty of regulatory capital.

Lighthouse says that this is not a good time to be buying IFAs because of the fall-out from the global financial crisis in 2008. The prices of profitable IFA businesses are “still ludicrously high”. 

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