CompaniesFeb 22 2016

Lighthouse profits up 50%

twitter-iconfacebook-iconlinkedin-iconmail-iconprint-icon
Search supported by
Lighthouse profits up 50%

Profit before tax at Lighthouse Group was up 50 per cent to £0.9m in 2015, compared with £0.6m in 2014.

Revenues were up 4 per cent to £49m in 2015, compared with £47m in 2014, with 48 per cent of revenues generated from clients being recurring.

Average revenue production per adviser increased 8 per cent to £93,000, compared with £86,000 in 2014.

The boost to profits came despite operating costs increasing from £12.1m in 2014 to £13.2m in 2015, as a result of greater regulatory costs and increased business levels.

Richard Last, chairman of Lighthouse Group, said the increase in average annualised revenue per adviser and gross margin resulted in a significant increase in earnings, which “creates sound foundations for the future.”

Mr Last said: “With the opportunities in such areas as increased flexibility in the personal and corporate pension markets, together with a strong cash balance, operational scale and a robust business model, Lighthouse is well positioned to deliver future growth.”

The 2015 results followed the announcement in December that Lighthouse Group has adopted a new long-term incentive plan to replace certain share options previously issued, with the objective of attracting, motivating and retaining key staff.

Its remuneration committee has, in consultation with external advisers, created a management incentive scheme designed to aid delivery of the company’s growth objectives.

Annual awards in the form of options over ordinary shares or conditional shares will be granted to the executive directors of up to 150 per cent of salary, as at the date of grant.