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.
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
