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Lighthouse Group

  • BY: Andrew Hore |
  • POSTED: 09/07/2012 |

Lighthouse Group feels that IFAs are unloved by investors and it wants to leave Aim, triggering a sharp fall in the share price.

The shares slumped 1.75p to 3.12p, which values Lighthouse at £4m.

A general meeting is due to take place on 31 July. Lighthouse requires 75% of the shares voted on the resolution to be in favour.

Lighthouse has reduced the number of advisers it has but their average annualised revenue was 11% higher. In 2011, revenues fell from £63.1m to £60.4m but costs were kept under control so the underlying profit improved from £293,000 to £708,000. There was an exceptional charge of £3.4m relating to past trading practices at Sumus, which Lighthouse acquired. There was cash in the bank of £11.9m at the end of 2011.

The Retail Distribution Review is due to be imposed on 1 January 2013 and this presents challenges for Lighthouse. The regulatory changes are making the outlook uncertain. Management also believes that the low share price will hinder any potential discussions with bidders, whereas an unquoted company will be judged purely on its profit, revenues and other valuation metrics.
The Aim withdrawal could be on 8 August if shareholders agree. Lighthouse has said it will review the possibility of paying dividends.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFJune2012_33.pdf

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