Mortgages  

London & Country eyes flotation

London & Country eyes flotation

London & Country Mortgages is assessing various options to build on recent growth, including a possible stock market flotation.

A statement from its board of directors, responding to speculation this morning (21 June), confirmed that, following receipt of certain expressions of interest, Fenchurch has been appointed to advise “on a range of strategic options for the business, including a potential sale or initial public offering”.

It stressed there is no certainty that this review will lead to a transaction and L&C will also consider the benefits of continued growth of the business under its current ownership.

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The national fee-free mortgage intermediary could be valued at up to £300m should it choose to float, after having achieved strong growth in market share and profitability in recent years.

In 2015, the firm posted profits before tax of £8.5m on revenues of £35.2m.

Chairman Michael Edge owns 70 per cent of the firm, and already pocketed around £50m from the sale of Chase de Vere Investments to Bank of Ireland in 2000, which saw L&C spun out as part of the deal.

At the end of 2014, The Mortgage Advice Bureau chief executive Peter Brodnicki made £42m when the firm floated on the Alternative Investment Market, with a valuation of more than £80m.

peter.walker@ft.com