Lighthouse Group posted a £232,000 pre-tax loss in the first six months of the year as adviser numbers dipped 18 per cent year-on-year following the introduction of the RDR.
The loss in the first half of the year follows a £59,000 pre-tax profit in the first six months of 2012.
Revenues were down 14 per cent year-on-year, from £27.1m in the first six months of the 2012 to £23.4m in the first six months of this year, mainly as a result of the drop in adviser numbers, the firm said in its interim results today.
Adviser numbers fell from 608 at the end of June 2012 to roughly 500 at the end of June this year. This followed a 15 per cent reduction in advisers the year before.
While there was a significant drop in adviser numbers, however, the average revenue per adviser rose 3 per cent to £80,000 a year.
The group’s net cash balances, after the deduction of £820,000 in unsecured loan notes raised in March, stood at £8.3m at 30 June 2013, a reduction of £2.2m from the 2012 year end position of £10.5m.
The group has made no further provision for any potential liabilities arising from Arch Cru or other advice issues.
The board says it proposes no dividend in the current year.
Lighthouse Group chairman Richard Last says: “The board is pleased with the progress that the group has made during the period. This strong result has been driven by the group’s focus on increasing revenue per adviser, higher levels of engagement between advisers and clients and an ongoing focus on building relationships with affinity groups through the LFA division. All of this has been achieved despite the unprecedented changes that the industry has faced in recent months.
“Lighthouse is in a robust position in the market with a strong balance sheet and a good operating position post-RDR, and the board is confident that the outlook for the group in the short and longer term remains positive.”