Lighthouse Group pre-tax interim profits have soared 131 per cent from £470,000 to £829,000 despite a loss of £500,000 in revenues due to the switch-off of trail commission.
The group’s revenues fell to £23.78m from £23.94m at the end of June 2015.
The results say: “Whilst revenues reduced marginally in comparison with the same period in 2015, this was primarily as a result of a reduction of £500,000 in trail receipts from platform-based providers following the sunset clause introduced by the FCA becoming fully effective from 1 April 2016.”
However, this was offset by a 6 per cent rise in the amount earned per adviser to £96,000 from £91,000 at the end of H1 2015.
The group also says its net cash reserves were £7.5m at the end of June, compared to £6.9m at the same time last year and £7.9m at the end of last December.
The firm say this is due to paying £703,000 in redress and paying a final 2015 dividend of £204,000 in April 2016.
Lighthouse also launched an investment arm, Luceo Asset Management, on 16 September.
The initial Luceo investment funds open for business on 3 October 2016 and will be multi-manager portfolios managed by Octopus Investments.
The funds will be sold on the Lighthouse Zurich Platform.
Lighthouse Group chairman Richard Last says: “Continued progress in developing proprietary auto-enrolment and investment products is expected to contribute to future growth in profits.”