Lighthouse Group, the national advisory service group listed on the London Stock Exchange’s Alternative Investment Market, has announced plans to close its administrative “back office centre” in Exeter following the completion of a strategic review.
The group, which consists of several operating subsidiaries including generalist national IFA firm Lighthouse Financial Advice and network Lighthouse Advisory Services, said it had conducted a review that focused on the “optimum locations” in relation to its principal business units and the remaining time on leases at its various offices.
It said the result was that it will seek to close its office in Exeter, subject to final Board approval and following a “collective consultation process with employee representatives. The office would be closed prior to the end of March 2014, it said.
Earlier this year, Lighthouse reported a £5.4m drop in gross profit for 2012 as the group prepared for the introduction of the Retail Distribution Review, from £60.4m to around £55m. The company reported an overall net loss before tax of £4.6m.
This followed a year in which the group made headlines after former chairman David Hickey led a failed bid to de-list it from Aim, which eventually led to him stepping down from his role in September last year.
Despite these set backs, the firm said it was seeking to expand the number of face-to-face advisers within the advisory divisions of the business over the coming two years by around 8-10 a month, with the group targeting a total of 500 advisers during 2013.
Malcolm Streatfield, Chief Executive Officer of Lighthouse, commented: “This announcement comes as part of the Group’s ongoing work to rationalise and simplify its operational structure, as previously reported.
“The operational efficiencies that would result if the proposal [to close the Exeter office] was implemented would benefit the overall group. As a result of the group’s growing client base, particularly through its strong partnerships with affinity groups, staff from the Exeter office who did wish to apply to relocate to other offices would be able to do so.”
