Lighthouse Group made a pre-tax loss of £1.6m in 2013, compared to a £4.6m loss in 2012, as the national advice firm set aside an additional £310,000 in redress.
The group’s annual results, published this week, say the £1.2m it set aside for a review of Arch cru sales has proved sufficient.
However, Lighthouse has made a further provision of £310,000 “as a result of certain other redress matters” although did not specify what these were.
Revenue fell by 13 per cent during the year, from £55m to £48m.
Lighthouse says this reflects a 17 per cent reduction in adviser numbers from 550 to 457 as a result of the RDR. Average revenue per adviser rose by 3 per cent to £82,000.
The group’s operating costs rose by 8 per cent from £13.6m to £14.8m.
It says this reflects a £1.2m investment in adviser recruitment and training and higher professional indemnity insurance costs.
Lighthouse Group chairman Richard Last says: “The LFA business is now better placed to fully capitalise on the affinity relationships that it has secured.
“The restructuring we announced in September is expected to deliver significant operational gains and cost savings by mid-2014 and provides a solid platform for future growth.”
Philip J Milton & Company managing director Philip Milton says: “I fear that under the RDR it is going to be a constant struggle for old-style networks like Lighthouse to make a profit.”