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Lighthouse moves into profit for first time

Lighthouse has crept into profit for the first time.

The group posted a pro- fit before amortisation of 71,000 in the six months to June 30 compared with a loss of 992,000 last year.

Losses before tax were cut to 131,000, from 1,440,000 in 2004 as the group had significant tax losses brought forward.

Turnover increased by 17 per cent to 15.1m as a result of increasing turnover per adviser. Mortgage business was also up by 55 per cent following M-Day and costs were down by 12 per cent.

Chief executive Malcolm Streatfield attributes the turnround in performance to improved investment conditions and the absence of misselling scandals which have put off investors.

He believes that the media focus on the savings gap has played its part in persuading people to invest.

Streatfield says the roll-out of the group’s electronic trading platform, Xpress, is key to increasing the productivity of advisers.

Implementation started in January and Streatfield says the group is already noticing an increase in volumes of business submitted electronically.

He says: “All the historical examples of misselling are coming to an end and depolarisation had virtually no impact on us. There are also no regulatory changes on the horizon to hamper us in the coming year.”

Lighthouse is to rebrand its divisions from November 1 to increase the profile of the brand. Lighthouse Temple will be the new name for the group’s biggest national division, its wealth management division will be branded LighthouseWealth, Lighthouse- Xpress will be the name of its network and LighthouseCorporate will describe the group’s corporate joint venture.

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