Lighthouse Group

LN: LGT

£42.5m market cap

33.25p last close

Lighthouse comprises a diverse group of UK financial advice firms serving individuals and businesses. The main focus is on Middle Britain and contracts with 23 affinity groups are an important revenue and profit contributor.

Investment summary

FY18 revenues were held back by the impact on client demand of the Q4 equity market correction and a levelling off in pension transfer activity. Nevertheless, revenue generated from affinity relationships continued to grow. Recurring revenue was up 10% and now accounts for more than 50% of customer revenue. The opportunity for the group to generate good long-term growth by meeting the need for financial advice, particularly within its affinity relationships, remains attractive.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2017A 54.1 3.2 2.5 1.49 22.3 N/A
2018A 53.4 3.4 2.6 1.54 21.6 N/A
2019E N/A N/A N/A N/A N/A N/A
2020E N/A N/A N/A N/A N/A N/A
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 0.8 21.8 33.0
Relative* 2.5 19.3 43.0
52-week high/low 38.7p/21.8p
*% relative to local index
Key management
Richard Last Chairman
Malcolm Streatfield CEO
Peter Smith CFO

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