IFA and pensions administration firm Lighthouse Group has increased its turnover by more than £6m and made significant inroads towards group operating profitability in the last year.
According to Lighthouse Group plc’s consolidated profit and loss account for 2005, Turnover increased 23% from £26.5m in 2004 to £32.6m and gross profit rose 25% to £8.6m while the EBITDA - or group operating loss before depreciation, amortisation of goodwill and exceptional operating expenses and interest – also rose from a loss of £797,000 in 2004 to £472,000.
Indications of an improvement in the business performance can be seen in the reduction of the firm’s loss before taxation, which has reduced substantially from £1.8m in 2004 to £482,155, and the actual loss before exceptional costs and tax – such as those gained through the acquisition of Carrwoods Barker in December 2005 – fell to just £51,000 from £1.3m the previous year and the company now holds over £5m in cash.
Chairman David Hickey says the firm is now keen to accelerate organic growth since implementation of Lighthouse Express – the bespoke technology platform used by its advisers – and the acquisition of Carrwoods Barkers, which has now been rebranded as Lighthouse Carrwoods.
More importantly, the firm has seen an improvement in the average turnover per adviser at Lighthouse Group from £52,000 to £60,000 by the end of 2005, and this figure is even higher within its LighthouseWealth and the LighthousePractices - totalling 39 advisers – at an averaged production of £104,000 per adviser for 2005 compared with £76,000 in 2004 and is expecting to improve again as the Carrwoods proposition generated an average per adviser of around
£120,000 a year in 2005.
Hickey notes its base adviser usage within the Lighthouse Express proposition dropped slightly in 2005 from 316 to 305, but those who left the company were “poor performing advisers”.
Moreover, the improving turnover is largely as a result of better business volume potential for advisers on the back of continual media focus on the consumer savings gap as well as the introduction of mortgage regulations in 2004, which encouraged the firm to focus its resources on advisers “capable of improving their volumes and quality of business”.
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Julie Henderson on 020 7968 4571 or email [email protected].IFAonline
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