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Lighthouse reports £1.53m profits as adviser numbers fall

Lighthouse Group has reported profits of £1.53m in 2010, mostly due to the sale of its pensions division.

Profits were bolstered by the sale of its pensions division for £1.24m as well as a £161,000 tax credit. Pre-tax profit stood at £129,000, compared to £93,000 in 2009.

The IFA group saw revenues rise 4 per cent to £63.1m, while  recurring revenues increased 7 per cent to £17.6m. Operating profits fell slightly from £14.7m to £14.4m.

Lighthouse has reported almost a 10 per cent fall in adviser numbers from 896 to 810.  In the statement, the firm says: “As things stand, many advisers are expecting to have to leave the industry at the end of 2012, whether due to insufficient time to secure the new qualification requirements or expected economic pressures. There is presently little sign of new professionals arriving in any significant volumes.”

The group is also continuing with retail distribution implementation programme. It says 73 per cent of the group’s advisers are either qualified or are on course to do so.

Lighthouse Group executive chairman David Hickey (pictured) says: “”The Board is pleased with the group’s strong performance during the year.  In particular, we have improved profitability and added to our already significant cash resources.  During the period we have also focused on improving the quality of earnings by further increasing recurring revenues.

“We are pursuing both organic growth through developing our affinity relationships, as well as continuing to assess acquisition opportunities.”

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  1. Whilst a 10% fall in adviser numbers for Lighthouse isn’t necessarily representative of the whole industry, it’s probably indicative, at least, of what’s already happening well ahead of the FSA’s December 2012 cliff edge deadline. So how credible is the FSA’s estimate of losses of between 8 and 13%? And how high will the figure have to go before Sants and Nicoll finally admit it to be an unacceptable price for forcing through the RDR regardless of everything that the industry’s trying to tell them? Or will it be like the increase in implementation costs from £600m to £1.7Bn? Just start talking about the new figure as if it’s entirely unremarkable and acceptable in the hope that everyone will stop bothering to comment on it, on the basis that there’s nothing anyone can do about it anyway.

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