REG - LSL Property Svcs. - Franchise Network Update

LSL Property ServicesAnnouncement

05/05/2023 18:00

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RNS Number : 6492Y  LSL Property Services PLC  05 May 2023

 
                5 May 2023

LSL Property Services plc ("LSL" or "Group")

FRANCHISE UPDATE

LSL confirms the execution of franchise agreements in respect of 23 LSLi
branches. Details of these agreements were included in its announcement made
on 4 May 2023 that its entire owned agency network would convert to
franchises. Final completion had been slightly delayed pending confirmation
that routine insurance arrangements had been put in place. As stated in the
announcement, work continues to finalise agreements that are at an advanced
stage in respect of the remaining 40 branches.

These branches were previously owned by LSL subsidiary companies (GFEA Ltd
(Goodfellows), Hawes & Co Ltd, Lauristons Ltd and Davis Tate Ltd). As part
of the steps taken to affect franchise agreements, these companies have been
acquired by a new franchisee, Southern Moves Limited in return for a long-term
royalties franchise agreement and de minimis consideration for assets
transferred, the same as the smaller related parties transactions for Oliver
Blake and David Vertannes previously announced on 4 May 2023.

The transaction constitutes a class 2 transaction for the purposes of the UK
Financial Authority's Listing Rules. The gross assets of these subsidiaries at
31 December 2021 was £15.4m, net of intercompany Group balances, of which,
LSL will retain the total carrying value of LSLi's goodwill and brand of
£6.5m. Statutory profit before tax of these subsidiaries in 2021 was £3.8m.

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