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

On 3 April the boards of Lighthouse, Quilter plc and its subsidiary, Intrinsic, announced that they had agreed terms of a recommended cash offer to be made by Intrinsic for Lighthouse. The offer is 33p in cash valuing the entire ordinary share capital at £46.2m or £42.2m after adjustment for c £4m of excess cash held on the balance sheet at end December 2018. The offer price was 24.5% above the closing price on the previous business day. As at 2 April, Intrinsic had received irrevocable undertakings in favour of the offer equivalent to 43.5% of the issued ordinary shares.

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
Last updated on 22/05/2019
Industry outlook

While an uncertain market background may dampen near-term demand, the key longer-term drivers of growth in the financial advice market remain in place: an ageing population, and increased choices and responsibility for pension accumulation and decumulation.

Last updated on 22/05/2019
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

Content on Lighthouse Group