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Bellpenny spent £10m on Ascot Lloyd deal, accounts reveal

Consolidator Bellpenny spent a total of £10.5 million on its acquisition of Ascot Lloyd, financial statements have revealed.

Bellpenny spent £10m on Ascot Lloyd deal, accounts reveal

Consolidator Bellpenny spent a total of £10.5 million on its acquisition of Ascot Lloyd, financial statements have revealed.

Last July Bellpenny agreed a deal to buy national advice firm Ascot Lloyd with the combined business having over £6 billion in funds under advice.

In the financial statements for Bellpenny’s holding company CPL Topco Limited, it has been revealed Bellpenny paid £10.5 million to acquire Ascot Lloyd last year.

This comprises of £7.6 million cash, £2.5 million in deferred considerations and £400,000 in contingent consideration. Of the £400,000 contingent consideration £100,000 is dependent on cost savings ‘target relating to integration synergies’ and £300,000 is dependent on there being ‘no material warranty or covenant breaches’.

The statements also revealed there was goodwill from the Ascot Lloyd acquisition of £15.3 million.

CPL Topco Limited owns the shares of both Bellpenny and Ascot Lloyd.

Following the acquisition, the two advice firms were rebranded as Ascot Lloyd and stayed an independent advice firm. Since then Ascot Lloyd made its first acquisition since the deal last December, with the acquisition of Pantheon Financial.

Financial statements have now revealed Ascot Lloyd paid £12.6 million for Pantheon Financial. This comprises of £3.8 million cash, deferred considerations of £7.7 million and £1.1 million in contingent considerations.

This £12.6 million is considerably less than Friends Provident paid for Pantheon in 2007. The life company bought the advice company for £16.8 million, with eventual add-ons boosting the value of the deal to £27 million.

Friends Provident struggled and failed to sell the company on to a private equity group in 2008 and ended up selling the stake it had bought from James Kaberry back to the founder in 2010.

For the year ending 31 December, Ascot Lloyd recorded earnings before interest, tax depreciation and amortisation (Ebitda) of £3.7 million, up from a 2016 loss of £300,000. The firm also made revenues of £31.5 million for 2017.

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