View more on these topics

Impairment costs contribute to £4.6m loss for Lighthouse

Lighthouse has reported pre-tax losses of £4.6m for 2012, compared to £2.7m losses in 2011, as it set aside £3.9m in costs relating to its 2008 merger with Sumus Group.

The firm’s accounts reveal the business has seen a drop in adviser numbers and change in operating methods as a result of the merger.

The accounts show Lighthouse incurred costs of £500,000 relating to its failed delisting from the Aim market, which led to the departure of chairman David Hickey last August.

The accounts also show Lighthouse continues to set aside a £1.6m provision relating to Arch Cru advice.

The firm spent £1.4m during 2012 on RDR implementation costs. Turnover fell from £60.4m to £55m.

Lighthouse’s cash reserves fell to £10.5m from £11m the previous year.

The firm has also taken on two loans this month, totalling £820,000, to provide support to its national arm, Lighthouse Financial Advice.

The business did not pay out a dividend to shareholders during the year, compared to a £345,000 payout at 27p per share in 2011.

Lighthouse has announced a new affinity partnership with the Union of Shop, Distributive and Allied Workers.

Lighthouse chairman Richard Last says: “Significant progress has been made on these matters during the year but substantive issues remain, in particular those relating to Arch Cru, and therefore the residual provision of £1.6 million has been retained.

“Whilst in the short-term the Group expects a reduction in the level of business written, due to market uncertainties and the reduction in the number of advisers at the beginning of 2013 due to retirements as a result of RDR, improvements are expected in the quality of the business written and consequently in margins achieved as well as an increase in the number of advisers as the LFA growth plans are realised.”

Recommended

JP Morgan launches Fusion range for Lanning

JP Morgan Asset Management is launching a five-strong range of fund of funds that will be led by Tony Lanning. Lanning, due to join in May 2013, will take over from Jonathan Shelon who is managing team constructing the funds. The team is a mixture of personnel from JP Morgan Investment Management and JP Morgan […]

Budget 13: Osborne sets out Equitable Life compensation details

The Government is to compensate customers who bought with-profits annuities through Equitable Life before 1992 using £1.6bn worth of funds raised through employee national insurance contributions. Speaking in his Budget announcement today, chancellor George Osborne said elderly policy holders will be given payments of £5,000. Policy holders who are on low incomes or income credit […]

Brokers: Countrywide IPO signifies a strengthening housing market

Brokers say Countrywide’s initial public offering price of £750m reflects an increasingly healthy property market. The group set the price of its IPO at 350p per share, representing the upper limit of the initial price range of 260 pence to 350 pence. The issuance of the new shares is expected to generate gross proceeds of […]

1

Royal London holds annual with-profits bonuses as returns reach 8.6%

Royal London has held or increased annual with-profits bonuses for 1 million policyholders as the provider’s open fund posted returns of 8.6 per cent during 2012. Royal London has two with-profits funds – the open Royal London Long Term Fund and the closed Scottish Life Fund. The Royal London Fund is divided into two parts […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Is this the next one to fall foul of the RDR bulldozer?

  2. Roman Duzinkewycz 20th March 2013 at 11:05 am

    Let’s not worry too much – they have Fay Goddard coming on board soon to help put things right – ha ha.

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com