Lighthouse boosted profits in 2010 after offloading its pensions division and shedding some of its lower-performing advisers.
The group today reports initial pre-tax profits of £129,000, up from £93,000 in 2009.
After deductions and the gain on the sale of its pensions division of £1.24m, profits for the year were £1.53m, however, up from £217,000 last year.
Earnings before tax, which broadly reflects cash profits, were up 22% from £1.08m to £1.32m, led by rising revenues and largely static margins and costs, says the group.
However the average number of advisers across the company fell 10%, from 896 in 2009 to 810 in 2010.
Lighthouse says the average revenue produced per adviser rose, however, as the exiting advisers were "lower performers".
Stable financial markets helped the group's business in the investment and pensions marketplace, which in aggregate accounted for some 75% of its revenues in both 2010 and 2009, it says.
Protection business remained static at approximately 15%, as did mortgages at about 4%.
During the year gross recurring income rose to £17.6m from £16.4m in 2009 and now represent approximately 28% of total group revenues, it says.
Chairman David Hickey says: "Successful organisations in the post Retail Distribution Implementation Plan environment will have to be financially robust, regulatory compliant and will require a suite of services valued by advisers and clients alike.
"With a strong balance sheet and significant recurring earnings, a strong focus on risk minimisation and a growing set of new client relationship entities, Lighthouse should be well positioned against a challenging background."
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