Lomond has acquired London sales and lettings agent Kinleigh Folkard & Hayward in a deal thought to be worth millions just days after alternative asset manager ICG bought out LDC from the group.
Kinleigh Folkard & Hayward (KFH) was established more than 45 years ago and operates more than 60 branches throughout key London boroughs.
The deal comes just a few months following Lomond’s first foray into the capital with the acquisition of Chase Evans and more recently Miles & Barr in Kent.
The KFH acquisition includes close to 14,000 properties under management, as well as build to rent, block management, surveying and financial services offerings.
GREAT PEOPLE
Lee Watts, Founder and Managing Director of Kinleigh Folkard & Hayward, says: “During the last 45 years we have grown the KFH brand across London under our own steam, underpinned by great people delivering excellent service with care.
“Our new partnership with Lomond provides the opportunity to grow even further sharing our values of great service and a people first approach into more homes across the capital.
“We are excited by the vast opportunity in continuing our growth journey with the support of Lomond, it really is the beginning of a new chapter for the KFH brand and our ambition to be the go to choice of agent across London.”
AMBITIONS FOR GROWTH
Ed Phillips, Lomond Chief Executive, adds: “As our first acquisition under our new partnership with ICG, it’s a big one and I am delighted to have secured the acquisition of Kinleigh Folkard & Hayward.
“KFH is a brand I’ve admired for many years in the London market and to have them part of Lomond underlines our ambitions for growth within London.
“The acquisition of KFH marks an incredibly exciting chapter for us, whilst this is our second brand in the capital after the recent acquisition of Chase Evans, this now gives us significant opportunity across a number of key London boroughs and vast potential for future growth as we add Kinleigh Folkard & Hayward as our cornerstone brand in London whilst working with the teams at Chase Evans to leverage the capabilities of both businesses.”
EXCITING DEVELOPMENT
And he adds: “The addition of 60 London branches to our nationwide network, means we’re now able to directly refer buyers and investors from London to our brands across the country and vice versa – an exciting development for our marketing strategy and a key component of our journey to become the leading estate and lettings agency business in the country.”
2002 FALLOUT
Earlier this year KFH reported a sharp decline in performance, with pre-tax profit plummeting to £753,000 from £4.7 million in 2022. Group revenue also dropped to £74 million from £82.5 million, while EBITDA fell to £4.9 million from £8.3 million.
KFH attributed the downturn to the fallout from the 2022 Mini-Budget, which led to rising interest rates and a 20% drop in London residential sales transactions. This also impacted related income streams, including survey, financial services, and conveyancing revenues.
KFH’s surveying division also suffered a £750,000 loss in 2023 compared to an £868,000 profit two years earlier. Turnover for the division fell to £3.4 million, leading to staff reductions from 63 to 49.
