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Lighthouse -15%/17% growth over next two years

March 2019

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • LGT
  • Price:
  • 24.5p
The fall in stockmarkets in Q4 took the shine off Lighthouse’s full year results. Overall, sales were broadly unchanged at £53.4m whilst recurring revenue improved by 10% to £26.8m - so 53% of the total. Operating expenses also reduced by £0.3m or 3% to £11.2m helping to lift pretax profit by 5% to £2.64m for eps up 6% to 1.7p. Net cash also looked good, up £0.8m to £9.6m (8p a share) despite investing £1m to take a 5.3% stake in AIM-listed Tavistock (TAVI; 3.1p) and a higher dividend.  The last few years have seen Lighthouse transition from owning an IFA network to faster growth from its affinity side, and it is now preferred supplier of financial advice to 23 such groups. ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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