Your Move parent sells mortgage brokerages for £18 million

The sale of LSL’s remaining direct-to-consumer brokerages will simplify the Group and build scale in Pivotal Growth as it aims to be a leading national mortgage broker.

lsl pollen david stewart

LSL Property Services has sold its two remaining direct-to-consumer brokerages to Pivotal Growth – its joint venture with Pollen Street Capital to buy and build a national mortgage broker – for close to £18 million.

Pivotal Growth has taken on mortgage, protection, and general insurance brokerage firms Embrace Financial Services and First2Protect.

DELIVERY

Embrace specialises in the delivery of mortgage and protection advice to estate agency-introduced customers, including LSL’s franchised and owned estate agency branches.

Meanwhile First2Protect arranges household insurance for customers of LSL’s estate agency division as well as third party introducers and via brokers that are members of LSL’s PRIMIS mortgage network.

The consideration payable for Embrace will be seven times the EBITDA in calendar year 2024, subject to agreed working capital adjustments, capped at a maximum of £10 million. The sum payable for First2Protect is £7.8 million, which is also seven-times adjusted 2022 EBITDA.

PAYABLE

The initial proceeds of the money raised plus the First2Protect net cash will improve its existing Group cash balances. These will be used to support LSL’s growth strategy, with the future consideration payable in cash to LSL during H1 2025, at which time LSL will consider the most effective use of the funds.

David Stewart (main pic), LSL Chief Executive, says: “I am pleased to confirm the transfer of Embrace and First2Protect to Pivotal Growth.

This marks another significant step in our work to simplify the Group, whilst we focus on taking advantage of the exciting opportunities available to us across each of our divisions, including our financial services network business.”

LSL’s PRIMIS mortgage network accounts for around 10% of all new mortgages in the UK and its business-to-business activities will remain a core part of the group.


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