Edison Research: Strategic agreement to broaden product offering

Lighthouse (LGT) has announced a strategic agreement with Tavistock Investments (TAVI) that will provide it with access to Tavistock’s investment solutions. This will help deliver the broader offering Lighthouse seeks for its in-house asset management arm, Luceo. In conjunction with this agreement, Lighthouse has subscribed £1m to Tavistock’s £1.25m equity fund-raising giving it a 5.3% stake. Our valuation (c 44p) and estimates are unchanged at this stage.

Strategic agreement to broaden product offering

Lighthouse launched Luceo Asset Management in 2016 to offer in-house funds of funds tailored to a range of risk profiles. Octopus acts as investment adviser to the funds. In H118, the AUM of the five funds increased from £37m to £53m, with one fund reaching the break-even level of c £20m. Lighthouse has been considering broadening the fund range further and was introduced to Tavistock recently, leading to the strategic agreement which will be formalised in the coming months. This will give Lighthouse access to Tavistock investment solutions, including in particular two recently launched capital protection funds. These funds are mainly invested in BlackRock iShares, and the guarantee is provided by Morgan Stanley and scales with the value of the fund. Tavistock also has a risk-graded fund range, a model portfolio service and plans to launch an app next year allowing consumers to buy a guaranteed fund provided by a large investment bank. Lighthouse sees a good opportunity here to provide products that meet common customer requirements and help Luceo funds reach a profitable scale.

Subscription to Tavistock fund-raising

In conjunction with the agreement, Lighthouse has subscribed £1m to a £1.25m equity fund-raising by Tavistock (at a 10% discount to the previous day’s closing share price). The issue is designed to facilitate the replacement of an expensive loan with an interest cost of 9% due for repayment in April 2019. The £1m investment in Tavistock deploys part of the c £5m free cash Lighthouse has available and at the same time reduces the potential requirement for seed capital that would arise if Luceo launched new funds itself. Tavistock appears to be at an inflexion point in terms of profitability. At end September it had FUM of £941m (up 26% over a year) and total assets under advice of £3.5bn. Half-year gross revenue was £14m (+14%), EBITDA £0.5m (+227%) and there was a small operating loss. It is also in the process of implementing a £0.5m cost reduction programme and this, together with the increase in FUM, is supportive of the consensus expectation of a sustained move into net profit.

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Why Lighthouse Group and Tavistock Investments formed a strategic alliance

Lighthouse Group (LON:LGT) and Tavistock Investments (LON:TAVI) announced today a strategic relationship with Lighthouse taking a 5.3% holding in the company. CEO’s Malcolm Streatfield and Brian Raven join DirectorsTalk to discuss the news.

Brian explains what it is that Tavistock do, how it will be using the proceeds and the rationale behind the partnership, while Malcolm tells us how Tavistock is going to further develop the Luceo Asset Management range of investment solutions, what it means for advisers and customers and also what we can expect to see from the relationship over the coming 12 months.

Lighthouse Group and Tavistock strategic alliance from DirectorsTalk on Vimeo.

Lighthouse Group Plc has been listed on AIM since 2000 as an integrated financial services company for investors, coupled with significant scale in terms of distribution through financial advisers and wealth managers and its fully diversified business model.

As one of the UK’s largest autonomous financial advice and wealth management groups, Lighthouse provides a comprehensive range of services to businesses and individuals and is retained by most of the major trades unions and other affinity groups to advise their combined memberships of over 6 million members.

The Group aims to increase its relationships with, and the benefits it derives from, its affinity group and professional partners.

In addition to a wide range of financial advice, the Group has developed innovative products to meet the specific needs of its retail and corporate customers.

Lighthouse operates from its headquarters in London as well as having principal operating offices in Stockport and Woodingdean, near Brighton.

Lighthouse Group plc: A very healthy 26% increase to EBITDA

Lighthouse Group’s CEO Malcolm Streatfield talks to DirectorsTalk about the interim results for the six months ended 30 June 2018. Malcolm discusses the highlights for the first half of the year, how LFA and affinity partners are progressing and the strategy for LFA. Malcolm also explains about how the second half of the year has started and the expectations for the year.

Lighthouse Group plc has been listed on AIM since 2000 as an integrated financial services company for investors, coupled with significant scale in terms of distribution through financial advisers and wealth managers and its fully diversified business model.

As one of the UK’s largest autonomous financial advice and wealth management groups, Lighthouse provides a comprehensive range of services to businesses and individuals and is retained by most of the major trades unions and other affinity groups to advise their combined memberships of over 6 million members.

The Group aims to increase its relationships with, and the benefits it derives from, its relationships with affinity groups and professional partners.
In addition to a wide range of financial advice, the Group has developed innovative products to meet the specific needs of its retail and corporate customers in the asset management and workplace solutions sectors.

Malcolm Streatfield discusses the Lighthouse results for the first half of 2018

Lighthouse Group’s main focus is on providing financial advice to ‘Middle Britain’ and is differentiated by contracts with 21 affinity partners. In this interview CEO Malcolm Streatfield discusses the results for the first half of 2018, highlighting good overall progress with revenues up by 5% from H117, PBT 12% and earnings per share 13%. The interim dividend was increased by 67%. Malcolm also outlines the group’s dividend policy, progress in the affinity business, an increasing level of recurring income and a positive start to H218.

 

CEO Malcolm Streatfield talks to Edison Investment Research about the Lighthouse divisions.

Lighthouse Group’s main focus is on providing financial advice to ‘Middle Britain’. Contracts with 21 affinity partners are a differentiating feature and make an important revenue and profit contribution. Wealth management serves a high net worth client base, while Luceo Asset Management provides an in-house fund offering.

Chief executive Malcolm Streatfield introduces the business and discusses the opportunities in its markets and the group’s strategy for growth.

Malcolm Streatfield talks to DirectorsTalk: “Affinity business progressing exceptionally well”

Lighthouse group Plc (LON:LGT) CEO Malcolm Streatfield talks to DirectorsTalk about its new agreement with The Public and Commercial Services Union. Malcolm explains what will be provided for these type of organisations, how well this side of the business is progressing, how they plan to grow further and how trading has been so far this year for the company.

Malcolm Streatfield talks to DirectorsTalk: 2017 Results

Lighthouse Group Plc (LON:LGT) CEO Malcolm Streatfield talks to DirectorsTalk about the strong set of results for 2017 issued. Malcolm talks us through the highlights, explains the sunset clause arrangements introduced by the FCA and what this means for Lighthouse and tells us where the focus will be for 2018 and what we can expect from Lighthouse this year.

Lighthouse Group Ahead of market expectations from DirectorsTalk on Vimeo.

Struggling with auto-enrolment? Lighthouse can help.

Lighthouse Group plc (“Lighthouse” or the “Group”), the national financial advisory group with 21 affinity relationships representing more than 7 million members, is delighted to confirm that the Pensions Regulator (“TPR”) has, for another year, continued to list the Corporate Pensions Trust, sponsored by Lighthouse and incorporating the Group’s proprietary offering the Lighthouse Pensions Trust, in its list of suitable Master Trust workplace pension schemes for auto-enrolment. 

This means that employers can confidently choose the Lighthouse Pensions Trust (“LPT”) as their fully advised auto-enrolment solution. So why is it important for employers and businesses to have professional pensions advice when setting up a workplace pension scheme? Roger Sanders, head of Workplace Distribution at Lighthouse, explains why using a specialist could end up saving you money.

If, like many small businesses, you don’t have a payroll or HR function, complying with auto-enrolment is likely to cause you a real administrative headache. The process is much more complex and time-consuming than you imagine.  It is also easy to get it wrong: if you do, you could end up with a fine from The Pensions Regulator – £400 as a warning, followed by £50 a day if you have fewer than 5 staff; if you have 5 or more staff the fine is £500 a day.

Lighthouse through its LPT offers you the whole solution in one place, wrapped up with full hands-on support from pension professionals that have been running pension schemes for decades.  LPT requires little input from you – leaving you to get on with running your business.

How Does LPT work?

Lighthouse makes setting up and running your scheme easy – our local adviser will visit you to explain everything to do with set-up and a dedicated member of our UK-based team will run the scheme for you.  All we need from you are your staff details at outset, earnings details each pay period and payment of the contributions.

LPT is part of the Corporate Pensions Trust Master Trust, which makes it a simple and secure solution in two key ways:

  • it is a multi-employer pension scheme that you can adopt as your own, saving all the trouble involved in running your own scheme;
  • it is looked after by Trustees who are responsible for overseeing the pension scheme and ensuring that it is managed appropriately for the benefit of its members.

In the case of LPT, there are three corporate trustees overseeing the scheme, including two fully independent of Lighthouse. The first, Bridge Trustees Limited, which chairs the Trustee Board, is a specialist independent pension trustee company and a wholly-owned subsidiary of Eversheds Sutherland LLP – one of the largest law firms in the world.  Bridge Trustees Limited has delivered trustee services for over 150 years. The other independent corporate trustee – BESTrustees Limited – is one of the UK’s leading independent pension trustee companies and provides such services for more than 150 pension funds. In addition to the above, Lighthouse Benefits Limited, a wholly-owned subsidiary of Lighthouse, is the third corporate trustee.

The Trustees have a legal duty to run the Trust in the best interests of the scheme members and have to demonstrate that they are qualified to run the scheme. They must have the required knowledge to run things appropriately and are subject to regular monitoring by the TPR.

What standards did Lighthouse have to meet in order to gain TPR approval?

The Lighthouse sponsored Corporate Pensions Trust, incorporating the LPT Master Trust had to undergo an independent audit to satisfy the stringent requirements of the Master Trust Assurance Framework designed by the ICAEW (Institute of Chartered Accountants in England and Wales) in conjunction with TPR. The assurance framework helps trustees assess whether their scheme meets the equivalent standards of governance and administration to those set out in the DC code. This code of practice sets out the standards of conduct and practice that TPR expects trustee boards of occupational pension schemes to comply with.

Obtaining master trust assurance shows that the pension scheme has been subject to an independent review of the description, design and effective operation of its governance and administration practices against a defined set of control objectives.

The master trust assurance framework and the associated listings on the TPR website also help employers find a pension scheme that has been independently reviewed which they can select to help them meet their statutory obligations to establish auto-enrolment compliant workplace pension schemes for their employees.

Why is this important and how can Lighthouse help?

For members, this means that you have independent specialists overseeing the operation of your workplace pension scheme. You do not need to be an expert in pension schemes yourself, as the Trustees will oversee the scheme on your and your employees’ behalf. The same goes for employers with experts looking after the interests of your staff. This all happens without you having to take time away from running your business.

The good news is our set-up service covers the whole auto-enrolment process. We can remove the hassle of auto-enrolment by setting up your scheme for you. Our auto-enrolment specialists cover the whole of the UK and will come and meet you or speak by phone, and explain what we do. Then, if you decide to go ahead, you simply give the relevant basic payroll information and we do the rest.

Our set-up service covers the whole auto-enrolment process. Action Plan:

  • Telling the Pensions Regulator who your point of contact is
  • Assessing your workforce and sort into three categories
  • Working out how auto-enrolment fits in with your payroll
  • Recommending and setting up a qualifying scheme
  • Telling your employees about the scheme, including statutory communications
  • Start paying employer contributions and deducting employee contributions on or before your staging date
  • Registering your scheme with the Pensions Regulator by completing the online Declaration of Compliance
  • Ongoing employee assessment, communication, contribution payments

Why use us? Local support from an established national business.

We provide the hands-on local support you need to set up your workplace pension and comply with auto-enrolment requirements from start to finish and for a fixed fee. We aim to make this as straightforward and easy as possible for you; no hidden charges, no jargon, and the minimum of paperwork. We provide hands-on local support wherever you are based, backed by our administration and support centre based in Stockport, for employers needing to set up a workplace pension scheme for their employees and to comply with their auto-enrolment statutory requirements.

Lighthouse Workplace Solutions (“LWS”) was set up to give small and medium-sized businesses access to modern, cost-effective workplace pension schemes and other employee benefits.

You can find out more at: www.lighthousegroup.plc.uk/services/auto-enrolment

LWS is a division of LighthouseCarrwood Limited, the independent financial advisory firm specialising in working with accountancy firms and their clients and which is a wholly-owned subsidiary of Lighthouse Group plc, one of the largest autonomous financial advisory groups in the UK. As such, LWS has access to and can draw on the considerable resources within and extensive experience across the Lighthouse Group of setting up and administering workplace pensions for employers of all sizes. We have already assisted hundreds of SMEs across the country in setting-up workplace pensions, removing the stress by managing the whole procedure for them.

Find out more

The benefit of an on-boarding and management service such as ours is that for little additional cost you can rely on us to ensure you meet your auto-enrolment duties. It is certainly cheaper than the fines you could incur for getting it wrong. To discuss how we can take the hassle out of setting up your workplace pension and complying with the complexities of auto-enrolment, not to mention minimising the costs to your business and taking away the risk of being fined, call 0330 123 2530 or email wpsenquiries@lighthousegeb.co.uk

NB. Our automatic enrolment services are not subject to the rules and guidance of the Financial Conduct Authority. We comply with the rules and guidance of The Pensions Regulator in advising on matters relating to automatic enrolment. Lighthouse Workplace Solutions is a trading name of LighthouseCarrwood Limited, an appointed representative of Lighthouse Advisory Services Limited, which is authorised and regulated by the Financial Conduct Authority. LighthouseCarrwood Limited is a wholly owned subsidiary of Lighthouse Group plc.