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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.”


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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.

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