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Lighthouse see 15% drop in advisers – FSA consent needed for more dividends

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.”

Lighthouse chairman David Hickey resigned this month following the firm’s failed attempt to delist from the Aim market.

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.”


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There are 3 comments at the moment, we would love to hear your opinion too.

  1. Simon Taylor-Young 24th September 2012 at 8:59 am

    I am not sure they CANNOT pay divis. Surely it is some momies, in some subsidiaries, held against some future liabilities. Possibly could clarify that.

    Anyhow, hardly positive and many questions unanswered: the main one: why do the Board think this is worth more than 5p ??

  2. This is a slowly sinking ship…..(somewhat ironic analogy given the network name)

    my ear to the underground grapevine says there may he some UCIS backlash with this firm as well, how much provisision will be put aside for redress if this does happen to be the case?

  3. So, these advisers who’ve left Lighthouse ~ how many were due to:-

    1. retirement,

    2. quitting the industry altogether,

    3. defecting to another network,

    4. going directly authorised or

    5. merging their business with another, non-Lighthouse firm?

    Without that kind of data, it’s difficult to know how to interpret a report of such a reduction in adviser numbers. It may be that Lighthouse are suffering no worse than any of their rivals.

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