LSL Property Services PLC (LSL.LN), a provider of residential property services, said Friday it has bought Halifax Estate Agencies Ltd., or HEAL, from Lloyds Banking Group PLC (LLOY.LN) for a nominal GBP1, adding that it has performed ahead of management's expectations since July 1.

MAIN FACTS:

-The HEAL network, representing 218 estate agency branches, will be absorbed into Your Move, Reeds Rains and InterCounty.

-Pro-forma net assets of HEAL at Dec. 31, 2008 were GBP38.4 million, and at completion will include minimum cash of GBP22.2 million to cover restructuring and provide an element of working capital.

-Opportunities for LSL to develop other income streams within HEAL include lettings and conveyancing referrals.

-Acquisition includes the transfer of circa 130 mortgage consultants who will strengthen LSL's position within the mortgage market.

-Acquisition will be cash positive in 2010 and earnings enhancing in 2011, assuming a modest market recovery.

-Completion is scheduled for Jan. 15, 2010

-Cash generation since the half year remains strong and net debt has reduced by a further circa GBP2 million.

-HEAL business is currently loss making but contains sufficient cash to enable LSL to carry out its restructuring and re-branding plans.

-Included within the completion balance sheet will be a minimum of GBP22.2 million cash which will cover restructuring costs not reflected within the completion balance sheet and provide an element of working capital.

-HEAL business includes freehold property with an estimated value of GBP8 million.

 
-By London Bureau, Dow Jones Newswires; Contact Ian Walker; +44 (0)20 7842 9296; ian.walker@dowjones.com
Lsl Property Services (LSE:LSL)
Historical Stock Chart
From Jun 2024 to Jul 2024 Click Here for more Lsl Property Services Charts.
Lsl Property Services (LSE:LSL)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more Lsl Property Services Charts.