LONDON (Alliance News) - Lighthouse Group PLC reported an increase in interim profit on Tuesday, resulting in the investment advice company hiking its dividend, as Chairman Richard Last announced he will be stepping down at the company's next annual general meeting in 2019.
In the six months ended June, Lighthouse's pretax profit increased 18% to GBP1.3 million from GBP1.1 million a year before. Revenue increased 4.7% to GBP26.9 million from GBP25.7 million.
The increase in revenue and profit reflected an increase in income generated by the company's affinity relationships - where the company offers financial advice to employees or members of an organisation - which increased 19% in the period to GBP5.1 million from GBP4.3 million.
Lighthouse continues to focus on its affinity relationships with contract renewals in the period secured with Unison, the General Federation of Trades Union, Parliament Hill, the Royal College of Nursing, the Public & Commercial Services Union, the Money Advice Service and FosterTalk.
Recurring revenue accounted for 51% of the company's revenue - totalling GBP13.2 million in the period, up from GBP11.9 million the year before.
The 11% increase in recurring revenue was double the increase in overall, which Lighthouse said "reflects the benefit of on-going changes in respect of new business written in 2017".
The company's operating costs decreased to GBP5.5 million from GBP5.7 million, reflecting improved operational and cost efficiency.
The AIM-listed company has cash reserves of GBP9.6 million, up from GBP8.7 million at the end of 2017, with no debt.
Lighthouse proposed an interim dividend of 0.20 pence, a 67% increase on the 0.12p paid last year.
The company also announced that Chairman Richard Last will be stepping down from his role and will not seek re-election at the company's next annual general meeting in May 2019.
Lighthouse did not announce a replacement and will begin its search for a new chairman "in the near future".
Looking ahead, the company is "positive" in achieving market expectations for the full year.
Chairman Last said: "The unaudited results for the six months illustrate the continued progression of the group's activities, with underlying earnings before interest, tax, depreciation and amortisation, before non-cash share-based charges, for the six months increasing by 26% to GBP1.7 million.
"Continued progress in the group's affinity operations and in developing proprietary financial products for both the individual and corporate markets is expected to contribute to future growth in profits."
Shares in Lighthouse were down 4.5% Tuesday at 29.60 pence each.
