Lighthouse posted a £2.4m loss for the first half of 2011, compared to a £117,000 profit in the first half of 2010, after incurring costs of almost £3m for the winding down of Falcon.
Lighthouse put the £2.9m non-recurring charge down to a £2.5m provision for closure costs and other potential liabilities, added to £400,000 expenses already incurred. Lighthouse and Falcon’s parent company Sumus merged in 2008. Lighthouse restructured its brands last year.
The firm saw adviser numbers drop from 820 in the first half of last year to 713 in the six months to 30 June 2011 while revenues fell from £32.6m to £30.9m.
Lighthouse executive chairman David Hickey (pictured) says: “The board has deemed it prudent to make a provision of £2.5m in respect of closure costs and other potential historic liabilities. Together with other non-recurring Falcon expenses of some £400,000 already incurred, this resulted in an aggregate non-recurring charge of £2.9m as set out in the consolidated statement of comprehensive income.”
Hickey went on to say in his statement the retail distribution review was “casting a shadow” over the industry and that transition to be RDR ready was “extremely disruptive.”