Lighthouse Share Discussion Threads

[trader2] 25/9/2012 15:57

Encouraging that Cavendish Asset Management Ltd look to have topped up with 275K shares yesterday - via (on) market transactions.

[bisiboy] 24/9/2012 17:33

i think the best outcome for shareholders would be a break up of the
group and trade sale of the parts
allowing for the funds set asside for complaints the market is attaching no value to the business other thank cash in the balance sheet.
it is difficult to see this changing in the short term.
when you see the crazy money somepeople are paying for these businesses you
have to say that it may be vunerable to a bid by someone who would do just that.

[graham1ty] 24/9/2012 15:54

Trader. No, no reply, though there has been friendly ( bland) emails about setting up a meeting this week. I am meeting them in a few days.

re my letter. Yes, they could have emailed a response this morning as soon as the results were out.There was also a promise that the "presentation" they give today ( to "prime stakeholders" not to us punters) would be avail;able on their website. I cannot find it

This is going to drift down into oblivion

[trader2] 24/9/2012 15:22

Graham1TY - I take it that you have yet to receive a reply to your letter of 31Aug12. Shame if so - it reflects so poorly on basic company quality. You get the impression that neither the IFA's or the Board or anyone has a real stake in the Company. They are all short termers - only concerned with next month's commission/fees.

[graham1ty] 24/9/2012 15:05

Below is a para from my letter of 31 August. I asked the company to set out why it thought the share was "heavily discounted".

"Shareholders would be interested in any proposals that would increase visibility for the Company and enhance value. These might include a commitment on paying a certain level of dividend; use of the Company's cash resources for a limited buyback of shares; seeking further outside capital from a new strategic investor; a commitment on corporate overheads and slimming down the Board (where base remuneration last year was over £1,000,000); a commitment by Board Members to invest in their own Company ( current holdings amount to less than £160,000 worth); a new group of advisers committed to a publicly-quoted Company; and a programme of presentations to explain to shareholders, analysts and potential investors why the Company should be more highly valued."

The Company today has NOT
a) committed to any dividend
b) suggested any buyback to support the price
c)suggested seeking outside capital
d)made comment on central admin costs
e) made any commitment to slim Board costs
f) suggested that the Board might actually invest in their own Company
g)suggested new advisers committed to public company life
h) offered a shareholders' presentation to all shareholders ( note it says just the Company's "primary stakeholders"

So, other than that.........

A failed opportunity to suprise the market by suggesting the Company actually has a real value. And so shares changing hands now at 4.75p, below last week's level and below the price pre delisting.

[graham1ty] 24/9/2012 09:03

ihollins, agree. The headline in citywire suggests droves of advisers jumping ship. It is actually because some have transferred to LASER, some have chosen not to take the exams ( and some have failed to get them), but overall should be increasing quality of average adviser within the group..... a good thing

[graham1ty] 24/9/2012 09:00

Money marketing taking the line that they CANNOT pay divis. Not sure that is correct.

[ihollins] 24/9/2012 08:57

The new rules will mean lgt is well positioned for growth next year - expect sideways movement till next year - well placed & training/qualifying in readiness - ive invested in a new vehicle to acquire ifa's whom are selling their books/business to avoid having to retrain near retirement - significant ops there & here - CWA1 (from RNS) decrease was primarily as a result of the departure of certain Appointed Representatives of Financial Services Advice and Support ("FSAS") following that regulated entity having ceased to trade and its advisers and operations having transferred to Lighthouse Advisory Services ("LASER"), as previously announced. LASER is now the single active regulated entity within the Group - i dont perceive it as an issue - ianh

[graham1ty] 24/9/2012 08:56

Thanks for posting that. A few inaccuracies, but still shows the spin that citywire has chosen to given it: negative

[graham1ty] 24/9/2012 08:04

Anything exciting in these ? Only first skim read......cannot see any attempt to boost the share price and explain why they think is worth more than 6p ( the pre delisting price)

[nigelsom] 24/9/2012 07:45

"The Board will look to secure additional Non-Executive Directors in due course"

Fine, but let's clear out the old lot first. The current board backed Hickey - time for them to get their collective coats

[graham1ty] 13/9/2012 13:32

CWA, his eulogy said "My record at Lighthouse speaks for itself" and I think he was referring to the growth in turnover and number of advisers.

One could however consider the shareprice and value for shareholders. It had fallen from over 50p to 2.5p ( the lowest bid after they announced the delisting), a fall of 95%. Under his watch the shareprice had fallen 90% pre delisitng, and then he takes responsibility for an action that halved it again. Champpagne all round. I fear he will get a full contractual payoff ( I assume a year's pay)..........if he had any pride he would refuse it.

At the delisting meeting it was stated that, of their £12m cash, about one third was held for regulatory capital requirements; about one third for working capital, and about one third was free cash ( I am sure those were meant as very rough numbers). So, there might be £3-4m of usuable cash. Enough to cover the cost of the aborted exercise......and actually to pay a dividend.......or buy back some shares.......or make shareholders happy, heaven forbid.

[cwa1] 13/9/2012 11:36

Nice to see some modest price improvement but IF they can get their act together this still looks very cheap to me.

Wonder how much the abortive de-list will have cost? Any thoughts on costs associated with Hickey going? Frankly I think he should be reimbursing the company because of his idiocy but I don't suppose that's likely :-(

[graham1ty] 12/9/2012 11:07

re contract renewal

I wish we had some context for these. LGT seem to be winning business all over the shop, from large prestigious groups. But is it profitable ? Do they get paid a retainer ? Is it hundreds of bits of tiny non-profitable business with a few chunks of profit ?

In roughly the last year we have had ASCL today (17,000 members); BFAWU ( 23,000); Royal College of Nurses ( 400,000); BA Clubs ( 40,000) AHDS ( undisclosed); CMSA (300,000) and Prospect ( undisclosed).

That is about 1,000,000 potential introductions.......I would guess that a BA pilot, or head teacher, seeking advice might have more dosh than a nurse ......

How does it work ? They all look like good "wins" ( and I applaud the news flow) but how do we value them ?

[cwa1] 12/9/2012 07:58

Contract renewal:-



and.....drum roll....

Notice of Interim Results
Lighthouse Group plc (AIM: LGT) will announce its Interim Results for the six months ended 30 June 2012, on Monday, 24 September 2012.
An analyst briefing will be held at the offices of Abchurch Communications, 16(th) Floor, 125 Old Broad Street, London, EC2N 1AR, at 9.30am on Monday, 24 September 2012.

[davidosh] 11/9/2012 11:31

Over 90% of companies manage to set a date for results and stick to it even if some only announce a date a few weeks or days ahead. This company really needs to change its approach to communication and corporate governance

[graham1ty] 11/9/2012 11:22

Trader, I do slightly agree with you. Would have been easy to get a message to me explaining why inappropriate to respond now that did not appear to be a fob off.

I am more annoyed that they have not told us when the results will be. If ( and a big if) they do use the Interims as a chance to rebuild bridges and even present to shareholders, then we need notice. Where ? When ?

I have been told in the past that it is not always certain when Board and auditors if needed can sign off on the figures, therefore impossible to predcit the exact date. Blooming well set a date and tell al that is when it has to be. If they wish to be taken seriously, get it sorted. if BP can produce figures to the day, well ,so should LGT be able to. Anyhow, the Board must have a time in their diary to meet by now.

[trader2] 11/9/2012 10:50

Not impressed - Last sould have replied even if it was "wait and see".

[graham1ty] 10/9/2012 12:07

I would guess that he cannot reply as is close season. Any reply would have to be just "wait and see".

The gauntlet has however, been thrown down. I hope they will announce when the results will be; have a meeting for any shareholders that wish to attend ( and even carry on if only three turn up); positively tackle the issues laid out in my letter; meet and charm the press who have had a go at them ( invite Money Marketing, FT, FTAdviser and IFAOnline to one-on-ones and explain the new order)
and explain how they will respect shareholders wishes for a listing; and how they will tackle their own main complaint: the depressed shareprice.

If they really think they are worth more than 6p ( the offer price pre-delisting) then tell us why.

re the last couple of announcements. Great. But give us some context. There have been a number of similar announcements in the last year.....but has it made the Company profitable ? What might the impact be ? ( as much as they can say)

[trader2] 10/9/2012 11:52

Graham1TY - let me 2nd CWA1's request - any reply from Richard Last to your letter of 31Aug12 ??

[cwa1] 10/9/2012 11:29

Nice to see a couple of modest, positive, RNSs recently. The long process of rebuilding trust has hopefully begun.

Wonder if AR is still interested in coming back on the board now that Hickey has gone?

G1TY, did you get a reply to your communication with the company?

[graham1ty] 10/9/2012 10:23

Not heard yet when the interims are going to be. Do hope they do not suddenly appear one morning......

A real opportunity for the Company and the new Chairman to rebuild bridges, explain the value of the Company, explain plans, meet shareholders, (convert back some of the 53% who voted against the Board), meet the press, get some positive coverage and above all, quieten discontent among the IFA network.

If a positive message can be given now, then at least anyone searching for info on LGT hits a positive spin and does not stumble on all the dirty washing ( hopefully now in the past)

Companies only get two or three occasions a year to tell the story. I do hope Mr Last is not going to miss this opportunity or the share price will languish for another six months