Lighthouse Group has reported an increase in revenue and pre-tax profits for the first half of this year, while announcing the departure of chairman Richard Last.
In its interim results out this morning (4 September), the financial advisory group posted an increase in revenue of 5 per cent to £26.88m and a growth in pre-tax profits by 12 per cent to £1.26m for the half year to June.
Lighthouse largely attributed its growing revenue to an increase in income from its affinity partnerships, particularly in its national division Lighthouse Financial Advice, which accounted for 20 per cent of revenues generated from customers.
The group currently has 21 contracted affinity agreements with organisations representing more than 6 million members, having recently renewed contracts with the likes of the Royal College of Nursing, Parliament Hill and the Money Advice Service.
The advisory group reduced its operating costs by £143,000 as its net cash balances grew from £8.1m the previous year to £9.6m in June.
Lighthouse reported its average annualised revenue per adviser increased by 6 per cent to £124,000, compared with £117,000 in the first half of 2017.
The group’s mortgage and protection division, Lighthouse Mortgage and Protection Solutions, reported an increase in revenue of 21 per cent to £630,000.
In the interim results, Richard Last, chairman of the Lighthouse Group, announced his intention to stand down from the company’s board and not stand for re-election as a director in May next year.
Mr Last had served as director of the company since 2007 and as chairman since 2012.
On the group’s financial performance, Mr Last said: "The unaudited results for the six months ended 30 June 2018 illustrate the continued progression of the group's activities, with underlying earnings before interest, tax, depreciation and amortisation (before non-cash share-based charges) for the six months increasing by 26 per cent to £1.65m.
"Continued progress in the group's affinity operations and in developing proprietary financial products for both the individual and corporate markets is expected to contribute to future growth in profits."
Mr Last said the process of looking for a new chairman and non-executive director would begin in the near future.