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Lighthouse Group (LGT)

Business description

Lighthouse comprises a diverse group of UK financial advice firms serving individuals and businesses. The main focus is on Middle Britain and contracts with 21 affinity groups are an important revenue and profit contributor. Wealth management serves a high net-worth client base while Luceo Asset Management provides an in-house fund offering.

Stock data

Market cap.£42.8m
Last close33.50p
High / Low (52 weeks)38.7p / 16.8p
Stock market listingLN
Forecast net debt (£m)9.2
Forecast gearing ratio (%)666
TeamFinancials
SectorFinancials

Price performance

%1m3m12m
Actual0.3(5.6)87.4
Relative *1.2(4.8)80.9

* % Relative to local index

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Investment summary

First half results from Lighthouse indicate that it is on track to meet market expectations for the full year, while the strength of its business providing financial advice to members of affinity partners was underlined by its success in renewing all eight of the contracts that have come up for renewal this year. This now accounts for 19% of group revenue and there is good scope to increase penetration in this area. Part of the c £5m of cash the group has available for investment is likely to be allocated here.

Last updated on 10/09/2018

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2016A 47.9 2.3 1.9 1.13 29.6 N/A
2017A 54.1 3.2 2.5 1.49 22.5 N/A
2018E 55.7 3.5 2.8 1.61 20.8 N/A
2019E 57.5 3.8 3.1 1.81 18.5 N/A

Last updated on 10/09/2018

Latest video

Executive interview – Lighthouse Group

Industry outlook

The industry background for financial advisers appears positive. Forecasts point to an ageing population with greater longevity. This is combined with a number of factors that mean individuals have to make more decisions and bear greater risk in relation to long-term saving for retirement. There has also been a period of changing tax rules on pensions that has increased the prevailing tax complexity. All this tends to push people to seek financial advice. Even though many may be reluctant to pay an economic price, there is still a large population of relatively affluent potential clients.

Last updated on 27/07/2018

Key management

Richard Last, Chairman
Malcolm Streatfield, CEO
Peter Smith, CFO

Company address

26 Throgmorton Street,
London
EC2N 2AN
United Kingdom
020 7065 5640
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