Lighthouse made a £59,000 pre-tax profit for the six months ending 30 June 2012, compared to a £2.4m loss in 2011, although adviser numbers dropped 15 per cent, from 713 to 608, over the same period.
In its interim accounts, published this morning, Lighthouse also revealed it has agreed with the FSA that its regulated subsidiaries will not make any more dividends to shareholders without prior consent from the regulator, due to historic liabilities.. It paid out a final dividend to shareholders from its cash reserves of £345,000 in June.
The group’s cash reserves now stand at £10.6m, compared to £11.8m the previous year.
In June 2011, Lighthouse made a provision of £2.5m for possible complaints relating to IFA group Falcon.
A statement in the firm’s accounts says: “As a result of historic issues, the group has recently given undertakings that its regulated subsidiaries will not make distributions or non-trading payments without discussion with and assent from the FSA.”
Non-executive director Richard Last was appointed non-executive chairman following Hickey’s departure.
Last says: “With financial strength now a key differentiator in this industry and with well developed plans for business development for post 1 January 2013 trading, the board considers that the group is well placed to take advantage of future opportunities.”