25th Mar 2014 13:37
LONDON (Alliance News) - Financial adviser Lighthouse Group PLC Tuesday reported a narrower annual pretax loss after its total administrative expenses fell and gross profit remained stable.
Lighthouse's pretax loss narrowed to GBP1.6 million in 2013, compared with GBP4.6 million in 2012. Although revenue fell to GBP48 million from GBP55 million as new industry rules resulted in a 17% reduction in adviser numbers, Lighthouse said more of its revenue was generated through its advisory businesses, Lighthouse Financial Advice and LighthouseCarrwood, which attract higher margins.
Recurring revenues increased to 34% of total Group revenues in comparison with 32% in 2012.
Administrative expenses fell to GBP17.0 million from GBP19.7 million.
The Financial Conduct Authority's retail distribution review has turned the investment advice industry on its head, increasing transparency of payments to financial advisers and upping the professional standards expected of them.
"The group has continued to invest in its LFA business which is now better placed to fully capitalise on the affinity relationships that it has secured. The increase in average annualised revenue per adviser and in percentage gross margins achieved are very positive and bode well for future trading. The restructuring we announced in September 2013 is expected to deliver significant operational gains and cost savings by mid 2014 and provides a solid platform for future growth," Richard Last, Chairman, said in a statement.
Lighthouse's restructuring was outlined in the final few months of 2013, resulting in the closure of its Exeter office and relocation of the operations formerly undertaken there to Woodingdean, near Brighton, and Stockport. Lighthouse said the restructuring is yet to have a material benefit regarding overheads but is projected to result in a GBP1.2 million reduction in annual running costs once the process has been fully completed in mid-2014.
Lighthouse did not pay a dividend, as was the case in 2012, but said it is committed to returning to the dividend list as soon as trading and regulatory conditions allow.
Lighthouse shares were Tuesday quoted at 3.75 pence, flat.
By Samuel Agini; [email protected]; @samuelagini
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