Lsl Property Services Plc · LSE:LSL
Lsl Property Services — Merger or Acquisition (October 2009)
8 slides from Lsl Property Services's merger presentation, October 2009
Slide 1: Proposed Acquisition of Halifax Estate Agencies Limited
Proposed Acquisition of Halifax Estate Agencies Limited Simon Embley, Group Chief Executive Officer Dean Fielding, Group Chief Finance Officer October 2009
Slide 2: LSL is well placed to take advantage of consolidation opportunities
LSL is well placed to take advantage of consolidation opportunities and has a successful track record on integration A track record of profitable growth EBITA Full Year * Acquisitions 40 20% 16.4% 16.9% 35 18% 13.9% 16% 30 EBITA margin 14% EBITA (£m) 11.3% 25 10.1% 12% 20 37.2 10% 15 32.3 8% 6% 10 1
Slide 3: Profile and historical financial information: Halifax Estate Agencies Limited
Profile and historical financial information : Halifax Estate Agencies Limited Halifax Estate Agency Profile Financial Information Historically loss-making at the operating level 4th largest estate agency network in the UK Business run primarily for FS product distribution Comprising 125 own
Slide 4: LSL strategic rationale
LSL strategic rationale An opportunity to acquire a high quality branch network, register of clients and pipeline of sales on favourable commercial terms. Includes an established asset management business with existing clients and a new three-year contract with Bank of Scotland, which includes:
Slide 5: Principal terms of the acquisition
Principal terms of the acquisition Acquisition of the entire share capital of HEAL from Bank of Scotland (BoS) for £1. A pro forma balance sheet which includes circa £38.4m of net current assets. This will include minimum cash of £22.2m which will cover restructuring costs, rebranding and additi
Slide 6: Financial bridge - the rationale
Financial bridge - the rationale Exchange Units Per Office Other Income Per Office Expenditure Per Office 35 120 400 30 350 100 300 25 80 250 £'000s 20 £'000s Units LSL Core 60 LSL Core 200 LSL Core 15 150 HEAL HEAL HEAL 40 10 100 5 20 50 0 0 0 H1 2009 H1 2009 H1 2009 Ave Per Branch Ave Per Branch A
Slide 7: Current trading, trends and prospects
Current trading, trends and prospects House Purchase Approvals House Purchase Since 1 July 2009 the group has performed ahead 0.8 0.74 0.74 0.71 0.72 0.69 of management’s expectations against a backdrop Units (m) 0.6 0.62 0.63 0.52 0.56 0.56 0.4 0.33 0.26 of a slightly improving housing market 0.2
Slide 8: Summary
Summary Purchase of 218 estate agency branches for £1, making LSL the second largest estate agent in the UK A three year asset management contract with the largest lender in the UK Pro forma net assets of £38.4m and minimum cash of £22.2m to cover restructuring costs Management track record
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