Lighthouse profits climb despite hike in FSCS costs


National advice firm Lighthouse Group has posted an increase in profits of over 300 per cent for the first half of 2015 despite a Financial Services Compensation Scheme levy of over £440,000.

The firm posted a pre-tax profit of £359,000, up from £88,000 for the six months to 30 June.

But it also saw a 54 per cent increase in its FSCS bills, adding £442,000 to costs.

Revenues also increased 2.5 per cent from £23.4m to £23.9m.

The company attributes its performance to an increase in average revenue per adviser, and says it is optimistic about opportunities in the continued rollout of auto-enrolment and future affinity deals.

Revenues from affinity deals climbed to £2.9m from £2.2m over the year, meaning affinity partnerships now represent 12.1 per cent of group revenues, up from 9.4 per cent in 2014.

But profits were hit by sales costs, which climbed from £16.5m to £16.7m, while operating expenses climbed from £6.4m to £6.5m.

Earlier this month the firm renewed contracts to be the preferred advice partner for members of the British Airways Clubs, the Association of School and College Leaders and The Bakers, Food and Allied Workers Union, while also agreeing to become the preferred adviser for members of the Association of Teachers and Lecturers.