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LEBC reports strong growth

LEBC
Jack McVitie - CEO, LEBC Group

LEBC Group, the national IFA, pensions and employee benefits consultancy, has in the six months to 31 March 2018, grown revenue by 20.7% to £10.2m (2017: £8.5m) and increased trading profit by 95.3% to £2.4m (2017: £1.2m).

The company reported: “These strong results are testament to LEBC’s strategy of generating value through investing in technology to establish a low-cost operating model in high-growth advisory areas. This, coupled with strong operational and financial discipline, ensures that LEBC is positioned to deliver growth organically going forward. This strategy is augmented by selective acquisitions of complementary businesses which are immediately earnings accretive.”

It added: “The Company is well placed to benefit from important trends in the financial advisory, pension and employee benefits market. Demographic changes are increasing the number of people in retirement, and their need for pension and care financial planning. By 2030, it is estimated there will be 14m people of State Pension Age, compared to 12.5m in 2016.

“Pension freedoms legislation introduced in 2015 has expanded the need for at-retirement advice, and there is growing demand from large Defined Benefit pension schemes to offer cost effective at-retirement advice to members (there are some 11m members of defined benefit schemes in the UK).

“The Company has invested in technology and a new operating model to increase the efficiency of its face-to-face advice.  This “bionic advice” has enabled the Company to reduce the cost of financial advice by a third. There is quantified demand for this lower cost financial advice in the UK, with 12.8m people potentially needing regulated financial advice who are not receiving it today.”

Jack McVitie (pictured above), chief executive of LEBC, said: “The Company is uniquely positioned to take advantage of important trends that are driving the need for lower cost regulated advice. Our “bionic advice” model, which uses technology and human advisers, is transforming access to top quality financial advice for employers, employees and individuals and we are pleased to see that this strategy is positively impacting our financial performance.

“Looking ahead, our unique business model, coupled with our strong management team and financial and operational discipline, places us particularly well for future market opportunities.”

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