Pension freedoms drive LEBC profit surge


LEBC has seen pre-tax profits climb 64 per cent for the year ending 30 September 2015 as the introduction of pension freedom boosted revenues.

The advice firm recorded a pre-tax profit of £1.8m, up from last year’s equivalent of £1.1m.

Turnover increased 21 per cent, from £12.4m to £15m, while cost of sales also rose 19 per cent, from £4.2m to £5m.

Increased costs included a rising bill for staff, which jumped 21 per cent from £7.3m to £8.8m, mostly driven by growing wages and salaries.

This was particularly true at the top of the business, with remuneration for directors climbing 23 per cent from £801,684 to £983,920.

LEBC’s highest paid director for the year took home £342,836, up 49 per cent from £230,189 last year.

LEBC chief executive Jack McVitie says the firm has benefited from increased efficiency and growing desire for its services in the aftermath of pensions freedom.

He says: “We now have 15 offices spread evenly across the UK and each one has enjoyed a very good year. We have maintained a proactive recruitment programme for qualified and part qualified advisers, and paraplanners along with the introduction of a graduate scheme.

“These programmes will remain in place during 2016 so we will continue to attract the necessary talent to ensure that we are meeting the demands of our growing client base, the business and ever changing sector.

“This time last year, I stated that our aim was to transform the access to top quality advice for employers, employees and individuals; and in doing so we would be in a position to develop our business and plan for the next 10 years of growth. We could not have wished for a better start.”