Shares digital

Lighthouse Group (LGT:AIM) – Finals PTP: £1.9m (£0.7m) Divi: 0.5p (n/a)

The independent financial adviser’s (IFA) proposed merger with quoted rival Sumus (SUMU:AIM) leaves Lighthouse with the majority shareholding and is set to take the IFA’s assets under advice from £6 billion to £8 billion, as announced with the results.

David Hickey will keep his role as executive chairman once the deal – due to be put to shareholders at an EGM on 14 April – completes. Hickey is confident the company’s strategy, with an emphasis on repeat business through ongoing advice rather than one-off commissions, will serve the company well despite a difficult outlook for equity markets. Of the total £53 million revenues derived from Lighthouse last year, recurring revenues (those derived from giving ongoing advice) came in at £10.5 million, a 60% increase on last year’s £6.6 million.

Shares says: Sales will be hit by equity markets but people will still want advice on pensions and other ongoing investments. Sound strategy but will take time.

by: Simon Keane