With a number of remortgage tenders arising later this year and early next year LMS the conveyancing panel management business has taken a significant step forward through an agreement with Connells and LSL. The management team will surely be proud of what they have achieved with this agreement.
LSL, and Connells together with the existing members of the LMS Group management team have collectively acquired equal interests in Legal Marketing Services Ltd (LMS) and LMS Direct Conveyancing Ltd (LMS DC) a licensed conveyancer via investment in the parent company of both LMS and LMS DC, Cybele Solutions Holdings Ltd.
LSL and Connells have acquired 33.33 per cent of LMS for £672K each. Both LSL and Connells could increase their investments to 50 per cent in future should they choose to exercise an option included in the agreement.
As at 31 March this year LMS Group had gross assets of around £4,000,000, making an after tax profit of £591,000 for the year ended 31 March 2011.
The strength and depth of the new investors enhances the already strong position that LMS has built for itself over the last 15 years. Together the parties will be able to put a positive case to lenders for their work.
Andy Knee, Managing Director for LMS commented:
“Whilst LMS has adapted well to the challenges of the market and remained profitable despite the significant downturn in housing and remortgage transactions over the last few years, we came to appreciate that our customers generally and lenders, in particular, are seeking not just good service levels but also the reassurance of longer term financial security and stability. This new joint venture will allow us to offer this and also open up mutually beneficial business opportunities allowing us to provide our flexible and effective solutions to the emerging needs of lenders that bulk conveyancing firms will find difficult to match.
“LSL and Connells have an outstanding track record and provide the perfect ‘fit’ for our business and I am excited at the prospect of working with them in the future.”
David Livesey, Group Chief Executive of Connells added:
“Developments in transactional conveyancing and the increasing number of lenders taking greater control over their conveyancing panel mean that now is an ideal time to invest in a best-of-class panel management provider. LMS will enhance Connells’ proposition to our lender partners, providing an effective and profitable addition to the Connells Group.
Simon Embley CEO of LSL said:
“This investment is in line with our desire to ensure that we have a market leading conveyancing proposition for our lender clients. Combining our financial strength and scalability with LMS’ proven track record will mean that we are in the driving seat to deliver innovative industry led solutions. We very much look forward to working with both LMS and Connells in the future.”
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