Lighthouse Group made a pre-tax loss of £1.6m in 2013, compared to a £4.6m loss in 2012, as the national advice firm made an additional £310,000 redress provision.
The group’s annual results, published today, say the £1.2m it set aside for a review of Arch cru sales has proved sufficient. However, Lighthouse has made a further provision of £310,000 “as a result of certain other redress matters”.
Revenue fell by 13 per cent during the year, from £55m in 2012 to £48m in 2013.
Lighthouse says this reflects the 17 per cent reduction in adviser numbers it has seen as a result of the RDR. Adviser numbers fell from 550 in 2012 to 457 in 2013.
Average revenue per adviser, however, rose by 3 per cent to £82,000.
The group’s operating costs rose by 8 per cent, from £13.6m in 2012 to £14.8m in 2013.
It says this reflects a £1.2m investment in adviser recruitment, training and promotional costs relating to Lighthouse Financial Advice, as well as higher professional indemnity insurance costs.
Lighthouse Group chairman Richard Last says: “The group has made substantive progress during 2013, a year which saw considerable market and regulatory change.
“The group has continued to invest in its LFA business which is now better placed to fully capitalise on the affinity relationships that it has secured.
“The restructuring we announced in September 2013 is expected to deliver significant operational gains and cost savings by mid-2014 and provides a solid platform for future growth.”