A City report by a leading consultancy firm has claimed that LSL is now the largest specialist mortgage broker in the UK following the launch of its enhanced PRIMIS business.
Zeus Capital, which compiles regular sponsored reports for investors on industry PLCs including Purplebricks and LSL, says the latter’s financial services arm will turn over £70 million this year and make a profit for the group of £16 million, up from £13.4 million in 2020.
The report goes on to say that LSL’s PRIMIS business is now worth up to £665 million after several years of being built up via acquisition, integration, brand building and more recently through joint ventures and distribution agreements.
Agents might be surprised to hear that the more well-known Mortgage Advice Bureau is considered by Zeus Capital to now be the No.2 in the mortgage broking market – it is estimated that PRIMIS has 2,681 advisers while MAB has 1,668.
“Arguably, PRIMIS should be valued at a premium to its smaller peer MAB as PRIMIS benefits from greater scale,” the report says.
The number of advisers using PRIMIS increased by 8% during 2020 while there was a 15% jump during the first three months of this year.
Zeus also predicts that PRIMIS will handle mortgage completions worth £9.3 billion this year, up from £7.7 billion last year.
LSL has previously said that “by 2023, for the first time, we expect the Financial Services Division to be the largest profit contributor to the Group”.
The report has been written by leading City analyst and investment expert Robin Savage. The report can be found on the Zeus Capital website once registration has been completed.