Lighthouse has hired seven recruitment managers to try and boost adviser numbers as its membership is expected to fall 23 per cent from 713 in January to 550 at the end of the year.
The group’s interim accounts, published this week, show the firm made a £59,000 pre-tax profit for the six months ending 30 June compared with a £2.4m loss in the first six months of 2011.
The accounts show a 15 per cent drop in adviser numbers from 713 to 608.
Speaking to Money Marketing, chief executive Malcolm Streatfield says the drop is due to the closure of the Financial Services Advice and Support brand, which saw 75 advisers leave instead of joining the Lighthouse network.
Streatfield adds a further 59 advisers have decided to leave the industry post-RDR.
He says: “We have got 59 advisers who are saying they are not doing the exams. That will leave us trading at around 550 come the start of next year.”
The firm has this month hired seven recruitment managers in an effort to boost numbers to around 650 by the end of 2013.
Streatfield says: “Clearly following the delisting proposal we have to hold our hands up and say we were not communicating as effectively with shareholders as we should have done.”
The Lighthouse accounts show the firm has agreed with the FSA that its regulated subsidiaries will not pay any more dividends to shareholders without prior consent from the regulator, due to historic liabilities.
Lighthouse paid out a £345,000 final dividend in June from its cash reserves, which currently stand at £10.6m.
PMI Independent Financial Advisers director John Stewart says: “Lighthouse portrayed itself in a negative light through the attempted delisting and will struggle to bring in 100 advisers as a result.”