Lighthouse Group has posted an 11% increase in revenues for the six months to June 30 2010, boosted by an improvement in investor confidence.
The group posted revenues of £32.6m for the six months, whilst pre-tax profits rose to £117,000, compared with last year's figure of £56,000. Gross profit increased marginally from £8.6m to £8.9m.
"The increase in revenues reflected greater investor confidence in markets generally," said the advisory group.
Earnings per share for the half year rose to 0.09 pence from 0.04 pence for the previous year. The board has also increased dividend payments, expected to be paid on 28 October, to 0.12p to reflect continuing confidence in the group's prospects.
Lighthouse said the RDR will dominate industry developments and regulation will lead to a reduction in advisers whilst higher capital adequacy requirements will challenge the existence of many firms.
"Within a couple of years, there will be considerably fewer advisers operating outside major organisations, such as Lighthouse," it said.
"Many advisers will see reductions in remuneration per case; and manufacturers will need alternative strategies both to maintain market share of new business and to ensure continued persistency of existing business."
It added the group's scale and financial strength differentiates it from most stand-alone organisations in the sector.
"Trading progressed steadily during the period," says executive chairman David Hickey. "The proportion of recurring revenues now exceeds 25% of the total and continues to rise, and the Group's operations continue to generate cash.
"The balance sheet is extremely strong with substantial cash deposits. With financial strength becoming a key differentiator in this industry, the board remains confident of further progress during the remainder of the year and beyond."
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