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Lighthouse revenues flat as DB transfer demand ‘levels out’

Financial advice-planning-advice-cashflow-analysisNational advice and investment firm Lighthouse has seen revenues remain flat as demand for defined benefit transfer advice saw a “levelling out”.

While the firm also points to “softened demand from customers following the correction in UK and global financial markets” as a reason for static revenues overall, it notes that recurring revenues jumped 10 per cent as DB transfers converted into ongoing fees.

Enquiries from Lighthouse’s affinity partnerships – where the firm strikes a deal to become the adviser of choice for major employers, unions and trade associations – were up 3 per cent in 2018, “adjusting for the exceptional level of pension transfer business advised on” the year previously.

The partnership based business continues to be higher-margin, Lighthouse notes.

Its in-house investment busienss, Luceo Asset Management, also saw a 56 per cent increase in assets under management, from £37m at 31 December 2017 to £58m at 31 December 2018.

On average, Lighthouse advisers produced £122,000 in revenue for the year. Overall profit before tax came in at £2.6m, up 5 per cent, based on revenues of £53m.

Lighthouse chairman Richard Last says: “The substantial rise in recurring revenues together with maintenance of the record average annualised revenue per adviser, along with a reduction in operating costs flowing from the group’s continuing focus on providing good customer outcomes, resulted in a further increase in earnings. Lighthouse remain well positioned to deliver further growth notwithstanding current market uncertainty.”

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