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Lighthouse cashes in as advice profits spike

Lighthouse has increased its pre-tax profits by nearly a third from £1.9m to £2.5m, according to annual results published this morning.

The AIM listed firm attributed much of this performance to its advice arm – Lighthouse Financial Advice – doing better than expected.

It generated significantly higher gross revenues than targeted and retained a greater proportion of the revenues produced.

Average revenue per adviser increased by 23 per cent to £122,000 in 2017, compared to £99,000 in 2016.

Similarly revenues increased 13 per cent to £54m from £48m while operating costs reduced from £12.3m to £11.9m over the same period.

Lighthouse Group chairman Richard Last says: “Lighthouse has continued to progress in 2017 and has delivered an excellent set of results, driven entirely by organic growth and a particularly pleasing performance in the affinity business.

“The substantial rise in average annualised revenue per adviser was a key factor in achieving a 13 per cent increase in revenues.

“This, along with a reduction in operating costs flowing from the group’s continuing focus on providing good customer outcomes, resulted in a substantial increase in earnings. Lighthouse remain well positioned to deliver further growth.”

At the end of January Lighthouse secured a new contract with Unison to provide mortgage advice to its members.

The deal to add the public service union’s 1.3 million members to the Lighthouse roster bolstered a range of other tie-ups with unions and workplace organisations, including Prospect, the Fire Brigades Union, and the Money Advice Service’s in-house staff.

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