EPIC : LGT


Web Site : http://www.lighthousegroup.plc.uk


LighthouseGroup is one of the UK's leading Independent Financial Advice companies

They have built their success in providing a comprehensive range of career development and business support solutions for Independent Financial Advisers and Mortgage Advisers.

LighthouseGroup operates in four divisions:

LIGHTHOUSE TEMPLE
The Group's national division for self employed IFAs

LIGHTHOUSE CARRWOOD
Employed advisers working within our accountancy practice associations

LIGHTHOUSE XPRESS
The Group's network division for financial services companies

LIGHTHOUSE WEALTH
Self employed wealth management advisers working with High Net Worth Clients



Last results : http://www.lighthousegroup.plc.uk/Files/PRels/PreliminaryResults-20070312.pdf

Latest Broker Note : http://www.danielstewart.co.uk/CMS/nmanagerpro/attachments/LGT_finals_120307.pdf



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Pretty much all buys so far today, yet the SP drifting down?

Comment from DS on todays interims :

Lighthouse Group - BUY
Price: 26.75p Target price: 32p Code: LGT.L Analyst: Justin Bates | 0161 209 3287

Good Interims

Lighthouse reported a good set of results this morning with revenue +30% at 26.6m. Adj. PBT increased by 66% to 0.8m and EPS was +58% at 1.0p. No DPS has been declared.

Productivity - this key measure of performance showed a good improvement with turnover per adviser rising by 20% to 85k from 71k.

Funds Under Advice - new investment flows were +36% to 530m and total funds under advice grew to c.5.6bn, +42%.

Quality of Earnings - recurring income made strong progress, +41% at 4.1m and now represents 15% of total revenues.

Outlook - The statement reports that trading is in-line with the boards expectations, and encouragingly a maiden DPS will be paid in 2008. The quantum of this will be decided in early 2008.Our one note of caution is that dependent upon your views re. the outlook for equity markets and therefore the prospects for investment products potentially losing appeal this might just temper growth.

Forecasts - For the time being we are maintaining our forecasts for 2007 for Adj. PBT of 2.7m, EPS of 2.4p, rising in 2008 to PBT of 3.1m and EPS of 2.6p. This leaves the stock on a PER of 11.3x, falling to 10.2x.