Acquisition

RNS Number : 5923U

LSL Property Services

19 October 2010

 



LSL Property Services plc

19 October 2010

Acquisition Announcement

LSL Property Services plc (LSL) has today agreed to acquire the award winning mortgage distribution company, Advance Mortgage Funding Limited (trading as Pink Home Loans) (AMF) and its subsidiary business BDS Mortgage Group Limited (BDS) (together Pink), from Skipton Holdings Group Limited a member of the Skipton Building Society Group.

The consideration for the acquisition (on a cash free, debt free basis) is £1.59 million, funded from existing banking facilities. Completion of the acquisition is subject to FSA approval and is expected to take place at the end of the month in which this is obtained.

For the year ended 31 December 2009, AMF made a loss from operations of £1.8 million and BDS made a loss from operations of £1.7 million. Proforma unaudited loss from operations for the eight months ended 31 August 2010 of AMF was £278,000 and for BDS it was £256,000. As at 31 December 2009, the gross assets of AMF were £4.4 million and BDS were £1.1 million.

AMF operates as a mortgage and insurance distribution company providing products and services to financial intermediaries, while BDS operates as a mortgage and insurance network and packager.

Following the acquisition of Pink, LSL will build on its significant market position to create a formidable new force in the intermediary sphere, as one of the largest intermediary networks in the UK focusing on mortgage and protection advice. The acquisition further strengthens LSL's relationship with its key lender clients.

For further information, please contact:

Simon Embley, Group Chief Executive Officer

Steve Cooke, Group Finance Director

LSL Property Services plc 0203 215 1015

 

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