NationalsJun 21 2018

LEBC’s profits jump 95%

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LEBC’s profits jump 95%

National independent advice firm LEBC saw its trading profits grow by 95.3 per cent to £2.4m in the six months to the end of March 2018.

The firm also saw a 20.7 per cent increase in revenues to £10.2m in the same period.

LEBC stated this growth is due to the firm’s investment in technology to establish a low-cost operating model in high-growth advisory areas, coupled with selective acquisitions of complementary businesses that are immediately earnings accretive.

The firm introduced a ‘bionic advice’ model in 2016, which combines human and automated services in a ‘bionic’ system.

This has allowed the company to reduce the cost of financial advice by a third, bosses stated.

In February, LEBC completed the acquisition of Aspira, a Bristol-based financial advisory firm with 50 staff, 11,000 clients and £500m assets under management for £5m.

The acquisition will provide further capability to meet the growing demand for financial advice in the second half of the financial year and will be earnings enhancing in the current year, the firm said.

According to Jack McVitie, chief executive of LEBC, the firm is “uniquely positioned to take advantage of important trends that are driving the need for lower cost regulated advice”.

He said: “Our ‘bionic advice’ model, which uses technology and human advisers, is transforming access to top quality financial advice for employers, employees and individuals and we are pleased to see that this strategy is positively impacting our financial performance.

“Looking ahead, our unique business model, coupled with our strong management team and financial and operational discipline, places us particularly well for future market opportunities.”