Lighthouse Group has reported a 50 per cent increase in its pre-tax profits for 2015 but operating costs rose amid regulatory pressures.
Profit before tax was up from £600,000 in 2014 to £900,000 at the end of 2015. Revenues were also up 4 per cent from £47m to £49m with half of the total figure generated from recurring revenues.
However, operating costs for the year increased to £13.2m from £12m one year ago as a result of “higher regulatory costs and increased business levels”, the firm says.
The firm saw a £442,000 increase in regulatory charges from the Financial Conduct Authority in addition to the costs of “professional indemnity insurance and additional resources deployed to deal with the increased business volumes” resulting from the new pensions freedom rules.
Lighthouse Group chairman Richard Last says: “The group has continued to make good progress during 2015. The increase in average annualised revenue per adviser and gross margin resulted in a significant increase in earnings which creates sound foundations for the future.
“With the opportunities in such areas as increased flexibility in the personal and corporate pension markets, together with a strong cash balance, operational scale and a robust business model, Lighthouse is well positioned to deliver future growth.”