Lighthouse Group chief executive has told Financial Adviser the is currently focusing on several growth plans, including its Lighthouse IFA 500 strategy that will see it expand its adviser numbers by eight to 10 a month until 2015.
Mr Streatfield said this was designed to increase the number of advisers working for the advisory division of Lighthouse by the start of 2015.
He said: “We need advisers in that division as we keep winning affinity contracts and we are putting a lot of investment into growing this organically.”
Two weeks ago, the group won an affinity contract that had just been announced with shopworker’s union Usdaw, bringing more than 400,000 more consumers under advice. This week, Foresters Friendly Society entered into a strategic partnership with Lighthouse to strengthen its existing relationship.
Mr Streatfield added that the group has a “limited graduate programme but we recognise the need to bring new blood into the industry and Lighthouse will be playing its part in that, bringing on well-qualified youngsters who are attracted to a career in financial services.”
Earlier this month, Fay Goddard, former chief executive of the Personal Finance Society, revealed that she is to join Lighthouse as a non-executive director. Mr Streatfield said this would help the company in its pursuit of graduates.
The comments came after he unveiled the Lighthouse’s 2012 results, in which the company highlighted a £1.4m charge arising from RDR preparation and investment.
| Lighthouse: Key figures |
Average annualised revenue for each adviser rose 14 per cent in 2012. Overall gross profit for 2012 was down on last year, at £55m compared to £60.4m in 2011. Overall loss for 2012: £4.6m. Cost of abortive delisting attempt: £500,000. |
The situation was similar for Aegon-owned advisory network Origen Financial Services, which posted a pre-tax loss of £2.9m for 2012, although its losses were lower than they were in 2011, when they stood at £3.5m.
Accounts lodged with Companies House showed that income fell by 8 per cent from £17.6m in 2011 to £16.2m in 2012.
Origen’s chief executive Mike Kirsch also claimed that advisers within the firm were prepared for RDR, since they had put so much into getting ready.
The average revenue per adviser increased to £227,000 last year, up from £211,000 in 2011, while administrative expenses fell by 25 per cent from £2.6m in 2011 to £1.9m last year.
The firm is currently preparing to fight a legal battle with the Financial Services Compensation Scheme over a disputed claim for compensation for Origen customers who were advised on Keydata Investment Services products.
