LSL Property Services has sold its holding of 49.6% in LMS, a provider of conveyancing panel management services, to a UK private equity firm for £12m.

The sale simplifies the group structure, providing further capital for deployment into opportunities to accelerate the company’s growth strategy, in particular financial services.

The carrying value of the investment at 31 December 2020 was £9.1m. In the 12 months to 31 December 2020, the LSL share of LMS profit after tax was £0.3m.

This announcement follows significant progress developing and executing a clear financial services led growth strategy supported by what LSL describes as ‘a strong and flexible balance sheet’, with announcements in 2021 of two technology acquisitions, a major financial services distribution agreement with The Property Franchise Group plc, a £200m joint venture with Pollen Street Capital to create a major mortgage broker, “Pivotal Growth” and key senior hires.

LSL reported last month a very strong financial performance in the first quarter of 2021 and impressive trading in April. LSL also announced the recommencement of guidance with an improved growth profile and the reinstatement of its dividend policy.  

LSL, along with Connells, agreed a three-way joint venture with LMS in June 2011, and invested in its parent company Cybele Solutions.

LSL, Connells and the LMS management team each paid £672,000 for a 33.33% share in the business, which was established in 1991. The agreement allowed for them to up their stake to 50% each.