Industry giant LRG enjoys big profits but debt mountain grows
The company's debts outstrip its profit figure as it continues to acquire more businesses.
Bluechip agency Leaders Romans Group (LRG) has revealed a leap in revenue and profit, but also an increase in its huge debts.
Company revenue rose from £126.5 million to £165 million last year, and profit went up from £20.5 million to £29.5 million, as the property industry enjoyed a post-Covid boom.
LRG also saw its residential sales go up from £8.5 million to £9 million, and the number of instructions rise to 11,800 from 10,900.
However, the company’s debt figure shot up from £52.9 million to £57.7 million, in the year ending 31 December 2021.
LRG was to be sold by venture capital owner the Bowmark Group to another big money firm, Platinum Equity for an undisclosed sum earlier this year.
The firm was formed in 2016 from the merger of two Bowmark estate agency firms, Leaders Lettings and Romans Group, forming a new industry giant with 210 branches and managing 62,000 properties. Currently, LRG employs 2,500 people.
Shrewd move
LRG bought one of the UK’s largest independent estate agencies, Acorn Group, recently.
The acquisition was one of the largest ever by LRG and is designed to widen its reach and market share in the South following its purchase of Northfields in March this year, and Portico in October 2021.
“I think that the acquisition of Acorn at this time could prove to be a very shrewd move by LRG.”
Adam Walker, who is a management consultant and business transfer agent, says in a column for The Negotiator: “I think that the acquisition of Acorn at this time could prove to be a very shrewd move by LRG.
“The market for sales businesses is very volatile and their value will probably increase sharply as soon as the economic outlook is brighter.”
