Forward planning is boost for Lighthouse

The AIM-listed group, which bought Leeds-based Godfrey Pearson in a deal worth 1.9m at the beginning of 2009, pushed annual revenue up 12 per cent to 60.7m.

It made a pre-tax profit of 93,000 after depreciation and amortisation, following an 8.5m loss the previous year – although the business said that had been largely down to a one-off impairment charge. Like-for-like revenue was down 10 per cent from 54.4m in 2008.

Lighthouse, which has grown in recent years through several transactions, joint ventures and mergers and acquisitions, said it wants to continue expanding organically and through purchases.

Allan Rosengren, joint chief executive of Lighthouse, said its "affinity partnerships" with large employer groups and trade unions had helped its 2009 performance against a "very difficult economic backdrop".

"In the first half of the year it was really very challenging. What is driving the demand for advice is the very low rate of interest that people can find on deposit.

"People are aware of the likely shortfall to their retirement planning and are looking at their pension increasingly. Also in a recession, or if things are very difficult, people turn to protection of their lack of it. That has resulted in a number of people asking us to arrange life cover or income protection."

Lighthouse has 900 advisors and 500,000 clients. It advises on a wide range of areas including house purchases, life cover, pension planning, investment and tax management. Advice on investments and pensions now makes up 74 per cent of turnover, with protection next at 14 per cent.

Lighthouse highlighted its 95 per cent rise in earnings before interest and taxes and depreciation and amortisation (Ebitda) which Mr Rosengren said the firm regarded as its real performance. The merger with Sumus, another IFA and wealth management firm in 2008, meant there was previously a hit from impairments and a loss on intangible assets and goodwill which Mr Rosengren described as "book entries".

He also said the integration of Godfrey Pearson, rebranded LighthouseGP, had been smooth with only the question of a different IT system presenting "a marginal challenge". Based at the Harewood estate, Lighthouse GP targets young professionals such as doctors, dentists and teachers and is headed by Lee Barnard.

David Hickey, executive chairman, said: "We have improved profitability and added to our already significant cash resources. During the period

we have also focused on improving the quality of earnings

by further increasing recurring revenues. We are pursuing both organic growth through developing our affinity relationships, as well as continuing to assess acquisition opportunities."

A WEALTH OF EXPERIENCE

Allan Rosengren, joint chief executive, joined in the Lighthouse Group in May 2008 as a result of the merger with Sumus.

It is his job to focus on the group's move to funds under advice and administration and take responsibility for its SIPP business, City Trustees.

Mr Rosengren has been working in financial services for more than two decades. He co-founded Falcon Group in 1983 with Julian Telling, where they developed a high net worth clientele.

Today the Lighthouse Group's main shareholders include Liverpool Victoria, Legal & General, Aviva and Friends Provident..