News and Press
| Date: | 27th March 2007 |
| Title: | Lighthouse Group PLC |
| Author: | - |
| Download: | pdf version |
Lighthouse Group plc ("Lighthouse" or "the Company")
Strategic Arrangements with Liverpool Victoria
Strategic Arrangements with Liverpool Victoria Lighthouse Group plc
(AIM:LGT), one of the UK's largest Independent Financial Adviser groups
and pension scheme administrators, today announces that it has entered
into new strategic arrangements ("the Arrangements") with Liverpool Victoria
Friendly Society Limited ("LV="), the UK's largest friendly society which
specialises in offering insurance and financial services to major UK affinity
groups.
Exclusive Market
Access Under the terms of the Arrangements, Lighthouse has acquired exclusive
access to provide Independent Financial Advice to affinity group members
with whom LV= has associations. These groups include 10 of the UK's largest
trade unions including Unison, TGWU, the Association of School and College
Leaders, Prospect and the GMB. This provides an unprecedented opportunity
for Lighthouse to offer independent 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
with LV= to commence registration with Lighthouse immediately in order
to achieve a seamless handover of adviser and client relationships.
Existing and Future Revenue Streams
Certain recurring revenues related to the LV= whole of market division
have been transferred to Lighthouse through a revenue sharing agreement,
which it is estimated will contribute over £1 million to Lighthouse
revenues on an annualised basis. The Arrangements also provide for initial
revenue sharing between the parties deriving from future affinity group
business.
Financial Terms
In consideration of the Arrangements, Lighthouse has today agreed to conditionally
issue 4,172,672 new ordinary shares, with a current market value of approximately
£918,000, to LV=, which represents 4.99 per cent of the total enlarged
Lighthouse shares in issue, excluding any unexercised share options or
warrants. LV= has also subscribed for a further 5 per cent of the total
enlarged Lighthouse shares in issue, excluding any unexercised share options
or warrants, at a price of 25 pence per share, raising approximately £1
million additional funds for Lighthouse. The issue and allotment of all
of these shares is conditional upon the admission to trading on the AIM
market of the London Stock Exchange plc. Admission of these shares is
expected to take effect on 2 April 2007.
LV= will then hold 8,353,706 shares representing 9.99 per cent of the
issued share capital of Lighthouse.
Notwithstanding the increased number of shares in issue, the Arrangements
are expected 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 of the proposition we offer to our affinity group partners. We will
now be able to offer an improved service to the members of these groups,
through a specialist IFA with wider national coverage.
"Taking a strategic equity stake in Lighthouse is a significant move,
signalling the depth of the partnership and the importance to us of continued
involvement in 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
a new opportunity for our sales staff. We look forward to developing a
successful partnership with Lighthouse in the months and years ahead."
David Hickey, Lighthouse Executive Chairman said: "
LV= has unique access to the members of a substantial number of affinity
groups and we believe these arrangements to be an important step for both
parties. Through Lighthouse Temple Independent Financial Advisers, LV=
will be able to offer a broader range of comprehensive services with greater
national coverage. In addition to the potential for substantial growth
in our new customer base, Lighthouse is also pleased to boost its annual
recurring income by at least a further £1 million and 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
ability to deliver comprehensive and impartial financial advice. The Board
of Lighthouse is pleased to welcome LV= as a significant shareholder."
- Ends -
| For further information, please contact: | |
| Lighthouse Group plc | |
| David Hickey, Executive Chairman | Tel: +44 (0) 20 7398 7710 |
| Malcolm Streatfield, CEO | Tel: +44 (0) 20 7065 5640 www.lighthousegroup.plc.uk |
| Daniel Stewart & Company plc | |
| Lindsay Mair / Chloe Ponsonby | Tel: +44 (0) 20 7776 6550 www.danielstewart.co.uk |
| Media enquiries: | |
| Abchurch Communications | |
| Heather Salmond heather | |
| salmond@abchurch-group.com | |
| Gareth Mead | Tel: +44 (0) 20 7398 7700 |
| gareth.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 Financial
Adviser 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 and
corporate clients. The Company has in excess of £5 billion worth
of funds under influence.
Based in five main operational centres, in London, Manchester, Brighton,
Exeter and Reading, the Company has grown rapidly through both organic
growth and key acquisitions since being admitted to AIM in October 2000.
About LV=
LV= Friendly Society Limited, formed in 1843, is the UK's largest Friendly
Society. The LV= group of companies has more than 2.5 million members
and customers, and manages approximately £8 billion on their behalf.
The LV= group of companies provides a broad range of financial services,
including life assurance, general insurance, asset management, banking
services, and financial planning advice, and is still the only friendly
society to own a bank. As a mutual organisation, owned by its members
and with no shareholders, and therefore no dividends to pay, LV= Friendly
Society can use all profits to the advantage of members in terms of competitive
rates, terms of cover, investment performance and service.
LV= is a founding member of AMI, a trade association formed specifically
for mutual insurers in September 2004. LV= supports AMI's work of representing
the UK mutual insurance industry in lobbying and communicating with bodies
such as the FSA, UK Treasury, politicians, the European Union, the International
Association of Insurance Supervisors, and the International Accounting
Standards Board.
This information is provided by RNS
The company news service from the London Stock Exchange