Strategic Investment

This announcement contains price sensitive information for the purposes of Article 7 the Market Abuse Regulations EU 596/2014

14 November 2018

Lighthouse Group plc

("Lighthouse" or "the Group")

Strategic Investment

Lighthouse Group plc (AIM: LGT), the national financial advisory group, is pleased to announce that it has today made a subscription of £1 million in cash for 30,487,805 new ordinary shares at 3.28 pence per ordinary share in Tavistock Investments plc ("Tavistock") (AIM:TAVI) (the "Subscription").

This follows on from, and is in conjunction with, the Strategic Agreement between Lighthouse and Tavistock announced earlier today.

The Company's Subscription is part of Tavistock's wider fundraising of £1.25 million, with the remaining £250,000 being provided by existing shareholders and management. The new ordinary shares in Tavistock are being issued at 3.28 pence per share, being a ten per cent. discount to the closing mid-market price on 12 November 2018. Lighthouse's holding will represent 5.30 per cent. of the enlarged share capital of Tavistock. The Subscription is conditional upon admission of the shares to trading on AIM, which is expected to be on 19 November 2018. Lighthouse will use existing resources to fund the Subscription.

Tavistock is a financial advisory and fund management business. In its recent interim financial statements for the six months ended 30 September 2018 Tavistock reported £941 million assets under management through its own fund range, an increase of £196 million or 26 per cent. since September 2017 and £617 million or 190 per cent. since September 2016. It also reported an increase in on-going business revenues of 13 per cent. to £14.0 million and an increase of 276 per cent. in EBITDA to £516,000. In its annual financial statements for the year ended 31 March 2018, Tavistock reported an increase in assets under management of 44 per cent. to £866 million, an increase in on-going business revenues of 47 per cent. to £28.8 million and an increase of 91 per cent. in underlying EBITDA (after reorganisation costs) to £734,000. It also reported profit before tax for the year of £221,000.

Malcolm Streatfield, Chief Executive Officer of Lighthouse commented: "Lighthouse is a successful financial advisory business with particular expertise in providing advice to members of its affinity group partners whose aggregate membership is in excess of 6 million individuals. In our announcement earlier today I gave details of the Strategic Agreement that we have entered into with Tavistock to develop further effective, risk-managed investment solutions for our customers utilising Tavistock's established in-house investment solutions within our Luceo Asset Management Range in October 2016. This investment will serve to further underpin what I believe will be a successful working relationship between Lighthouse and Tavistock."

Brian Raven, Tavistock's Chief Executive, commented: "This strategic investment by Lighthouse, building on the strategic relationship between Lighthouse and Tavistock announced earlier today, is a significant development for both groups. We are delighted to welcome Lighthouse as a shareholder and look forward to achieving considerable success together in the coming years."

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About Lighthouse Group plc

Lighthouse has been listed on AIM since 2000 as an integrated financial services company for investors, coupled with significant scale in terms of distribution through financial advisers and wealth managers and its fully diversified business model.

As one of the UK's largest autonomous financial advice and wealth management groups, Lighthouse provides a comprehensive range of services to businesses and individuals and is retained by most of the major trades unions and other affinity groups to advise their combined memberships of over 6 million members.

The Group aims to increase its relationships with, and the benefits it derives from, its affinity group and professional partners.

In addition to a wide range of financial advice, the Group has developed innovative products to meet the specific needs of its retail and corporate customers.

Lighthouse operates from its headquarters in London as well as having principal operating offices in Stockport and Woodingdean, near Brighton.

For more information please visit: http://www.lighthousegroup.plc.uk/