National advice firm the Lighthouse group has reported a pre-tax loss of £1.6m for 2013 in a marked improvement on the previous year despite falling adviser numbers and a £310,000 provision for consumer redress.
Lighthouse reported a loss of £4.6m in 2012, from a loss of £2.7m in 2011.
An impairment charge of £3.9m against the value of its network arm Lighthouse Advisory Services was a major contributor to the loss.
In 2013 Lighthouse went some way to pare back those losses, but a further provision of £310,000 for client redress costs and falling revenue due to a reduction in adviser numbers kept it in the red.
Group revenues reduced by 13% to £48m in comparison with 2012 went it was £55m.
This was primarily as a result of the 17% reduction in average adviser numbers following the revised qualification and trading requirements of the RDR coming into effect, Lighthouse said.
However average revenue production per adviser increased by 3% to £82,000 in comparison with 2012 levels against general market expectations of double-digit percentage declines.
Recurring revenues increased to 34% of total group revenues in comparison with 32% in 2012.
Operating costs before non-recurring items increased by £1.2m to £14.8m.
This was after a gross investment cost of approximately £1.2m in adviser recruitment and training and promotional costs relating to Lighthouse Financial Advice, as well as higher professional indemnity insurance costs and in adding senior management in compliance and operations.
Lighthouse said it has paid out £1.2m in consumer redress linked to the sales of Arch Cru products, following the regulator's s404 review.
In September the group reported an 18% drop in adviser numbers for the six months ending 30 June, though average revenue per adviser saw a small increase of 3%.
Lighthouse announced in January this year plans to enter the auto-enrolment market with the launch of a pension trust set up for multiple employers.
Joe McDonnell joins as head of portfolio solutions (EMEA)
Adviser of the Year - South East
Fidelity Multi Asset CIO's outlook
Willis Owen report
From 1 March