Lighthouse Regulatory News (LGT)

27 Mar 2007 11:21

Lighthouse Group PLC27 March 2007 Press Release 27 March 2006 Lighthouse Group plc ("Lighthouse" or "the Company") Strategic Arrangements with Liverpool Victoria Lighthouse Group plc (AIM:LGT), one of the UK's largest Independent FinancialAdviser groups and pension scheme administrators, today announces that it hasentered into new strategic arrangements ("the Arrangements") with LiverpoolVictoria Friendly Society Limited ("LV="), the UK's largest friendly societywhich specialises in offering insurance and financial services to major UKaffinity groups. Exclusive Market Access Under the terms of the Arrangements, Lighthouse has acquired exclusive access toprovide Independent Financial Advice to affinity group members with whom LV= hasassociations. These groups include 10 of the UK's largest trade unionsincluding Unison, TGWU, the Association of School and College Leaders, Prospectand the GMB. This provides an unprecedented opportunity for Lighthouse to offerindependent financial advice to over 5 million members of these affinity groups. Seamless Adviser Integration Arrangements have been made to allow advisers and field managers employed withLV= to commence registration with Lighthouse immediately in order to achieve aseamless handover of adviser and client relationships. Existing and Future Revenue Streams Certain recurring revenues related to the LV= whole of market division have beentransferred to Lighthouse through a revenue sharing agreement, which it isestimated will contribute over £1 million to Lighthouse revenues on anannualised basis. The Arrangements also provide for initial revenue sharingbetween the parties deriving from future affinity group business. Financial Terms In consideration of the Arrangements, Lighthouse has today agreed toconditionally issue 4,172,672 new ordinary shares, with a current market valueof approximately £918,000, to LV=, which represents 4.99 per cent of the totalenlarged Lighthouse shares in issue, excluding any unexercised share options orwarrants. LV= has also subscribed for a further 5 per cent of the total enlargedLighthouse shares in issue, excluding any unexercised share options or warrants,at a price of 25 pence per share, raising approximately £1 million additionalfunds for Lighthouse. The issue and allotment of all of these shares is conditional upon the admissionto trading on the AIM market of the London Stock Exchange plc. Admission ofthese shares is expected to take effect on 2 April 2007. LV= will then hold8,353,706 shares representing 9.99 per cent of the issued share capital ofLighthouse. Notwithstanding the increased number of shares in issue, the Arrangements areexpected to be earnings enhancing for Lighthouse in the current year. Comment Mike Newton, LV='s Managing Director of Partnerships, said: "Offering life,pension and investment advice from the whole of market is an important part ofthe proposition we offer to our affinity group partners. We will now be able tooffer an improved service to the members of these groups, through a specialistIFA with wider national coverage. "Taking a strategic equity stake in Lighthouse is a significant move, signallingthe depth of the partnership and the importance to us of continued involvementin the whole of market advice service that our affinity group partners receive. "This is a positive move for our customers and affinity partners and presents anew opportunity for our sales staff. We look forward to developing a successfulpartnership with Lighthouse in the months and years ahead." David Hickey, Lighthouse Executive Chairman said: "LV= has unique access to themembers of a substantial number of affinity groups and we believe thesearrangements to be an important step for both parties. Through LighthouseTempleIndependent Financial Advisers, LV= will be able to offer a broader range ofcomprehensive services with greater national coverage. In addition to thepotential for substantial growth in our new customer base, Lighthouse is alsopleased to boost its annual recurring income by at least a further £1 millionand its already significant cash resources by a similar amount. "Finally, the purchase of a significant stake in Lighthouse also underscores LV='s commitment to their affinity groups and their belief in Lighthouse's abilityto deliver comprehensive and impartial financial advice. The Board ofLighthouse is pleased to welcome LV= as a significant shareholder." - Ends - For further information, please contact: Lighthouse Group plcDavid Hickey, Executive Chairman Tel: +44 (0) 20 7398 7710Malcolm Streatfield, CEO Tel: +44 (0) 20 7065 5640 www.lighthousegroup.plc.uk Daniel Stewart & Company plcLindsay Mair / Chloe Ponsonby Tel: +44 (0) 20 7776 6550 www.danielstewart.co.uk Media enquiries: Abchurch CommunicationsHeather Salmondheather.salmond@abchurch-group.comGareth Mead Tel: +44 (0) 20 7398 7700gareth.mead@abchurch-group.com www.abchurch-group.com Notes to Editors About Lighthouse Group The Lighthouse Group plc is one of the UK's largest Independent FinancialAdviser groups and pension scheme administrators. The Company provides support to over 550 IFAs across the UK who, in turn,provide fully independent financial planning advice to both private andcorporate clients. The Company has in excess of £5 billion worth of funds underinfluence. Based in five main operational centres, in London, Manchester, Brighton, Exeterand Reading, the Company has grown rapidly through both organic growth and keyacquisitions since being admitted to AIM in October 2000. About LV= LV= Friendly Society Limited, formed in 1843, is the UK's largest FriendlySociety. The LV= group of companies has more than 2.5 million members andcustomers, and manages approximately £8 billion on their behalf. The LV= groupof companies provides a broad range of financial services, including lifeassurance, general insurance, asset management, banking services, and financialplanning advice, and is still the only friendly society to own a bank. As amutual organisation, owned by its members and with no shareholders, andtherefore no dividends to pay, LV= Friendly Society can use all profits to theadvantage of members in terms of competitive rates, terms of cover, investmentperformance and service. LV= is a founding member of AMI, a trade association formed specifically formutual insurers in September 2004. LV= supports AMI's work of representing theUK mutual insurance industry in lobbying and communicating with bodies such asthe FSA, UK Treasury, politicians, the European Union, the InternationalAssociation of Insurance Supervisors, and the International Accounting StandardsBoard. This information is provided by RNS The company news service from the London Stock Exchange