Liquid error: wrong number of arguments (2 for 1) LSL gets new 100m backing from high street banks | Marsh & Parsons Sales and Lettings Estate Agents London

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LSL gets new 100m backing from high street banks

Thu 20 Jun 2013

LSL has upped its funding from the banks to 100m. Four high street banks are now backing the group, which
operates estate agency chains Reeds Rains and Your Move as well as Marsh & Parsons, and also runs
surveying, mortgages and other services.


The new lending deal lasts for just over four years, and breaks down into a 5m overdraft facility plus a 95m
revolving credit facility.


The deal replaces a previous 75m funding package from Barclays and Lloyds. The new package is being
provided by both those banks, plus HSBC and Santander. Each bank has committed funding of 25m. In a
statement, LSL said: The amount of the new facility has been increased to provide additional debt capacity in line
with the increase in group profitability over the last three years. Steve Cooke, LSL group finance director, said:
We are delighted with the support shown by our banking partners and are pleased to welcome HSBC and
Santander into our banking arrangement. The new facility will enable LSL to continue to deliver its strategy of
investing in organic growth initiatives and making selective value enhancing acquisitions. In May, in an update to
investors, LSL sounded upbeat, saying there had been an increase in activity levels and that it planned to
accelerate investment to increase its market share in estate agency.


However, last August, LSL announced a pre-tax loss of 7.9m for the first half of 2012, after having to set aside
17.3m to cover claims against its valuations business. At the same time, it announced the closure of some of its
estate agency branches because of poor sales.


In February this year, LSL which also provides valuation and asset management services for lenders announced
interim results for the whole of 2012 showing a profits slump of 62%, down from 17.6m to 6.7m. Despite the fall,
it said that there had been impressive growth in its estate agency division, which it said was 31% more profitable
than at the height of the market in 2006 when transactions were double.

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