Lighthouse shines beam on pensions opportunity as profits surge

22nd Feb 2016 13:30

(ShareCast News) - Final results from Lighthouse Group impressed, with the dividend lifted as profits from the financial advisory group surged.The AIM-listed company increased revenues 4% to £49m as average revenue production per adviser increased 8% to £93,000.With gross margin percentage edging higher to 30% from 29%m, pre-tax profit before tax rose 50% £0.9m and earnings per share by 55% to 0.68p.A final dividend of 0.16p per share was proposed, up from 0.12p a year ago, with analysts suggesting more such increases lay ahead.Chairman Richard Last said the increase in average annualised revenue per adviser and gross margin "creates sound foundations for the future"."With the opportunities in such areas as increased flexibility in the personal and corporate pension markets, together with a strong cash balance, operational scale and a robust business model, Lighthouse is well positioned to deliver future growth."House broker FinnCap added that with the strong market opportunity for pension advice, Lighthouse was well positioned to benefit."We have increased our target price to 13p, reflecting the generally firm market valuations in the sector and acknowledging that a strong balance sheet and improving earnings leave scope for dividend growth."