22nd Sep 2014 11:21
LONDON (Alliance News) - Lighthouse Group PLC Monday returned to the dividend list as it reported a swing to first-half pretax profit, although it also said that regulatory changes are continuing to have an effect on the market for retail finance advice in the UK.
In a statement, the AIM-listed financial advice company said it made a GBP88,000 pretax profit in the six months ended June 30, compared with a GBP232,000 pretax loss in the corresponding period last year.
Revenue was broadly flat at GBP23.4 million but average annualised revenues produced per adviser rose by 3% to GBP83,000, as the company adjusted to new rules, known as the retail distribution review, governing the investments sector. However, Lighthouse said pressure on margins, due to "variations" in divisional sales mix, resulted in a fall in gross profit to GBP6.9 million from GBP7.5 million.
Operating costs fell by 14% to GBP6.4 million, due in large part to the group's restructuring efforts, meaning that earnings before interest, tax, depreciation and amortisation rose by GBP385,000 to GBP436,000.
Lighthouse said it was pleased to make a return to the dividend list, as it said it will pay a 0.06 pence interim dividend on October 31.
Chairman Richard Last said Lighthouse is on track to meet market expectations for 2014.
"With a strong balance sheet and net cash balances of some GBP6.0 million the group is well placed to take advantage of the strategic opportunities available in what remains a fast developing market," Last said in a statement.
Ligthouse shares were Monday quoted up 9.3% at 4.10p.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Lighthouse