LSL Property Services Acquisition of Personal Touch Financial Services (4023D)

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RNS Number : 4023D

LSL Property Services

31 January 2018

 
 For Immediate Release              31 January 2018

LSL Property Services plc ("LSL")

Acquisition of Personal Touch Financial Services

LSL Property Services plc (LSL) has acquired the entire issued share capital of Personal Touch Financial Services Limited (PTFS) and its subsidiary company, Personal Touch Administration Services Limited (PTAS) from Personal Touch Holdings Limited. PTFS is a financial services business specialising in the provision of mortgage and other financial services products via its network of intermediaries.

The consideration for the acquisition is GBP4.8m plus an acquired intercompany debt of GBP0.6m and is made up of a payment of GBP2.8m which is due on completion and a further payment of GBP2.0m which is deferred for 12 months. The acquisition is being funded from LSL's existing banking facilities.

PTFS is authorised by the Financial Conduct Authority as a principal firm, with 200 appointed representative firms and 474 advisers. In 2017, the PTFS network of advisers arranged GBP5.1bn of mortgages. PTAS owns and operates the Toolbox software system, which is the operating system used by all PTFS appointed representatives.

The acquisition provides LSL with additional scale and market share in financial services, complementing LSL's existing businesses and further strengthening LSL's position as a leading distributor of mortgage and non-investment insurance products. The acquisition further strengthens the resilience and diversification of LSL's business model as the Group benefits from the provision of increased mortgage and non-investment insurance volumes by intermediaries outside LSL's core Estate Agency businesses.

PTFS and PTAS, reported aggregate losses before tax of GBP0.1m for the year ended 31(st) December 2016, at which date they had aggregate gross assets of GBP20.3m.

Ian Crabb, Group Chief Executive of LSL, said:

"This acquisition supports LSL's stated strategy of enhancing its position as a leading mortgage distributor and growing long-term profitability in the provision of residential property services in the UK by identifying value enhancing opportunities. LSL has deep sector expertise in the provision of financial services and PTFS is an excellent fit with our existing financial services businesses."

For further information, please contact:

 
 Ian Crabb, Group Chief Executive 
  Officer 
 Adam Castleton, Group Chief 
  Financial Officer 
 LSL Property Services plc           0207 382 0360 
 David Rydell 
  Richard Darby 
  Gemma Mostyn-Owen 
 Buchanan                            0207 466 5000

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 mortgage, pure protection and general insurance brokerage services. 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

This information is provided by RNS

The company news service from the London Stock Exchange

END

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