The retail financial services market is now estimated at £5 billion per annum, of which £3.3 billion (two thirds) is handled by IFAs. Increasingly the product providers are focussing on using the largest IFA groups as primary distributors. Following growth during 2003, Lighthouse is now ranked as 7th largest group in the UK and unlike most IFA groups, Lighthouse services all types of adviser.
Highlights of the results are:
4 Turnover: £22.8m (2002: £14.9m) – 53% increase resulting from strategy of building number of advisers, assisted by the Temple Financial Planning transaction
4 Gross profit: £4.8m (2002: £2.6m) – an increase of 83%
4 Operating expenses £5.9m (2002: £4.5m) – £1.4m relates to Temple Financial Planning, without which the underlying cost base remained static
4 Second half EBITDA loss reduced to £0.3m. EBITDA loss for year of £1.1m (2002: EBITDA loss of £1.9m).
4 Year end cash £2.7m
David Hickey, Executive Chairman of Lighthouse Group, said: “The forthcoming structural changes within the industry, resulting from regulation of the mortgage market and removal of polarisation, are increasing the pressure on the smaller players and providing further opportunities for consolidation.
“We now have sufficient critical mass to create economic relationships with the major product providers, growing turnover and a low cost base.”
