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Union deals guide Lighthouse to 'record' £2.5m profit

Union deals guide Lighthouse to 'record' £2.5m profit

A string of deals with some of the biggest unions in the UK propelled advice group Lighthouse to a 'record' pre-tax profit of £2.5 million last year.

According to 2017 financial results published this morning, Lighthouse saw a significant increase in the business that came from agreements with the like of Unite and Unison.

Over the course of the year the arrangements in place with 21 different organisations added £1.9 million to the group's total earnings, compared to £1.1 million in 2016. Revenues also grew 41% from 2016 to reach £9.6 million. 

In fact the deals were more successful than Lighthouse itself had anticipated at the start of the year, meaning margins on new business fell from 30% to 27% in 2017. 

'As advisers within Lighthouse Financial Advice Limited, the group's affinity-based national advisory business, generated significantly higher gross revenues than targeted, they retained a greater proportion of the revenues they produced,' the company said. 

This dip in margins was the only real down note in Lighthouse's announcement, as it revealed pre-tax profits increased from £1.9 million in 2016 to £2.5 million over 2017. 

Richard Last, chairman of Lighthouse, said the results were 'driven entirely by organic growth and a particularly pleasing performance in the affinity business'.

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