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Lighthouse rejects £17m AFH takeover bid

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Lighthouse Group has rejected a £17.4m acquisition by advice consolidator AFH.

A stock market announcement published today reveals AFH approached Lighthouse earlier this month with a takeover deal valuing Lighthouse shares at 13p.

However yesterday the Lighthouse Board confirmed it has rejected the initial offer.

AFH says it is considering whether it will make changes to the terms of the deal and, under takeover rules, has until 14 April to make an offer.

Revenue at AFH grew 40 per cent during 2015 as the firm completed 11 acquisitions.

Year end results published in January show revenues grew from £15m in 2014 to £21m in 2015.

Pre-tax profits were up by 86 per cent, from £860,000 to £1.6m, while funds under management with ongoing fee agreements doubled from £900m to £1.8bn.

Lighthouse’s 2015 results – published in February – show a 50 per cent increase in its pre-tax profits 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”.

Lighthouse could not be reached for comment.

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  1. According to the Dec-14 accounts they had an operating profit of all of 1.86% (wow). Net worth £3.7million . Total Current Liabilities of £7.2 million and loans and O/Ds of £8.1 million. With figures like these I am a bit surprised that they didn’t bite AFH’s hand of. Better to trouser a few quid now that stumble on like this I would have thought. Maybe they have a killer plan B.

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