Sale of investment

RNS Number : 7992Z

LSL Property Services PLC

26 May 2021

 

                                                                            26 May 2021

LSL Property Services plc ("LSL" or "Group")

Sale of investment in LMS as LSL targets deployment of capital into high growth areas

LSL announces the sale of its holding of 49.6% in LMS, a provider of conveyancing panel management services, to a UK Private Equity firm, for a cash consideration of £12m. The sale simplifies the Group structure, providing further capital for deployment into opportunities to accelerate the Group's growth strategy, in particular Financial Services.

The carrying value of the investment at 31 December 2020 was £9.1m. In the 12 months to 31 December 2020, the LSL share of LMS profit after tax was £0.3m.

This announcement follows significant progress developing and executing a clear Financial Services led growth strategy supported by a strong and flexible balance sheet, with announcements in 2021 of two technology acquisitions, a major financial services distribution agreement with The Property Franchise Group plc, a £200m joint venture with Pollen Street Capital to create a major mortgage broker, "Pivotal Growth" and key senior hires. LSL reported on 28 April 2021 very strong financial performance in the first quarter of 2021 and strong trading in April. LSL also announced the recommencement of guidance with an improved growth profile and the reinstatement of its dividend policy.  

Notes on LSL

LSL is one of the largest providers of services to mortgage intermediaries, specialist mortgage and protection advice to estate agency and new build customers and valuation services to the UK's biggest mortgage lenders, completing £32.6bn of mortgages in 2020. It represents approximately 9% of the total purchase and remortgage market with around 2,600 financial advisers. It was named Mortgage Network of the Year by both Moneyfacts and Mortgage Introducer in their 2020 awards, as well as Best Network 300+ ARs by Mortgage Strategy.

e.surv is one of the UK's largest providers of surveying and valuation services, supplying seven out of the ten largest lenders in the UK, employing over 500 operational surveyors, and performing over 500,000 valuation and surveys per annum for key lender clients. It was named Best Surveyor/Valuer at the 2020 Mortgage Strategy awards.

LSL operates a network of 226 owned and 130 franchised estate agency branches, with brands that include Your Move, Reeds Rains and Marsh & Parsons. For further information please visit LSL's website: lslps.co.uk

PRIMIS is the trading style of First Complete Limited, Personal Touch Financial Services Limited and Advance Mortgage Funding Limited which are all authorised and regulated by the Financial Conduct Authority.

For further information, please contact:

David Stewart, Group Chief Executive Officer
Adam Castleton, Group Chief Financial Officer
LSL Property Services plc	[e-mail]
Helen Tarbet
Sophie Wills
Buchanan	0207 466 5000 / [e-mail]

 

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