Acquisition

RNS Number : 5277P

LSL Property Services

19 February 2016

 

For immediate release

19 February 2016

LSL Property Services plc

Acquisition

LSL Property Services plc ("LSL") has, through a wholly owned subsidiary, acquired a 65% interest in Group First Limited ("GFL") who provide mortgage and protection brokerage services to the purchasers of new homes through its subsidiaries, Mortgages First Limited and Insurance First Brokers Limited. The consideration for the initial investment is £9.1m in cash with 50% payable on completion and a further 50% payable during 2017. The acquisition is being funded from LSL's existing banking facilities.

The agreement also includes put and call option provisions from the date the GFL 2018 audited accounts are filed at Companies House, which if exercised would increase LSL's investment in GFL to up to 100%. The additional consideration payable for the remaining shares would be calculated on an earnings multiple of between five and six times EBITA plus excess cash in the business and is capped at a maximum of £25m.

The management team, who retain a 35% interest, is led by Paul Maston who founded the business in 1988 and will continue as CEO of GFL. GFL reported profit before tax of £0.7m for the year ended 31 May 2015, at which date it had gross assets of £1.8m.

Ian Crabb, LSL Group CEO, said:

"This investment supports LSL's strategy to grow long term profitability in the provision of residential property services in the UK, by identifying value enhancing opportunities. Further, the investment strengthens LSL's relationships with its key housebuilder clients."

 For further information, please contact:

Ian Crabb, Group Chief Executive Officer
Adam Castleton, Group Finance Director
LSL Property Services plc	0207 382 0360
Richard Darby, Sophie McNulty, Sophie Cowles
Buchanan	0207 466 5000
Melanie Cowell ([e-mail])	07968 604660
LSL Press enquiries

Notes on LSL:

LSL is a leading provider of residential property services to its key customer groups.  Services to consumers include: residential sales, lettings, surveying, conveyancing and advice on mortgages and non-investment insurance products. Services to mortgage lenders include: valuations and panel management services, asset management and property management services. For further information, please visit LSL's website: www.lslps.co.uk

 

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