LSL takes over Pink in £1.59m debt-free deal
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LSL Property Services completed its anticipated buyout of Pink Home Loans last week for £1.59m, but left debts behind with the latter’s former owner Skipton Building Society.
LSL bought the network and its subsidiary BDS Mortgage Group on a cash-free debt-free basis, meaning any cash that was in the network stayed with Skipton, as did any debt.
For the year ended December 31 2009, Advance Mortgage Funding, which trades as Pink Home Loans, made a £1.8m loss from operations and BDS made a loss from operations of £1.7m. Pink’s unaudited loss from operations for the eight months ended August 31 2010 was £278,000 and for BDS it was £256,000.
The network has gross assets of £4.4m at December 31 2009 and BDS had £1.1m.
Pink will continue as a standalone network, separate from LSL’s other financial services businesses and network First Complete. David Copland will continue as managing director and no redundancies are expected.
Simon Embley, chief executive of LSL says: “We believe a company can only survive and be profitable with scale in the current market.
“With Pink included in the group, LSL is well positioned to drive value for our shareholders, our broker and lender partners and their customers.”
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