MortgagesNov 7 2016

London & Country reveals plans to float

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London & Country reveals plans to float

London & Country Mortgages intends to float on the stock exchange in the next two years.

The mortgage brokerage revealed the flotation plans today (7 November).

The announcement follows a statement earlier this year that the company was looking at a range of strategic options for the business, including a potential sale, following expressions of interest from third parties.

The company has now said it will prepare for an initial public offering by December 2018.

L&C managing director Phil Cartwright said: “We see an opportunity to create significant value in the next few years.

“The business is at the forefront of investment in distribution technology and is extremely well positioned to take advantage of shifting trends in the way consumers buy financial products.

“In combination with our qualified mortgage adviser sales force, this will deliver an unparalleled service giving customers choice about how they access our award winning, fee free mortgage advice.

“We have some exciting new initiatives that our customers and business partners will start to see over the next 12 months and we are confident that, with the additional support of a strategic minority investor, we can bring forward L&C’s goal of becoming the next household name in financial services.”

As part of its preparations to become a listed company, L&C intends to seek a pre-IPO investor for a minority stake in the company to support its growth initiatives.  

These include accelerating investment into the company’s online capabilities and brand awareness as well as making selected appointments to support L&C’s management and corporate governance structure.

It has been estimated that L&C could be valued at up to £300m if it floated given its recent profitability and growth in market share.

Mr Cartwright said L&C is on track to deliver a significant increase in profitability in 2016.

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