LSL Property Services plc Acquires 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 £4.8m plus an acquired intercompany debt of £0.6m and is made up of a payment of £2.8m which is due on completion and a further payment of £2.0m 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 £5.1bn 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 £0.1m for the year ended 31st December 2016, at which date they had aggregate gross assets of £20.3m.
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."