HouseShaw / Glinton Slade group (J303)
Three-company lettings / sales / commercial group · Sourced: Adam J Walker (Julie Drake), 3 Jun 2026 · Status: Under review · Structure: share sale · Analysed for Ed, 3 Jun 2026.
1Recommendation
Keep under review; treat primarily as a thesis-learning pack and a possible later target — behind Glenn Flegg. Larger, faster-growing managed book, and the share structure matches our preference — but it front-loads risk for a first deal: a group only assembled in 2024–25, no consolidated P&L provided, intercompany + acquisition debt, a balance-sheet-insolvent sales subsidiary, 33% sales exposure (off-thesis) and 22 HMOs. Worth a low-cost information request and a watching brief; progress only if the price carves sensibly to the lettings book and the numbers prove out.
2The opportunity
Three companies + a dormant name, owned by John Shaw & Stephen Locke (parent: Shawship Enterprises):
- Glinton Slade Ltd — lettings (core engine)
- Beech Tree Slade Ltd — residential sales
- Potter & Ford Ltd — “commercial” rump
- HouseShaw — dormant, included
Chesham HP5 + High Wycombe HP11. ~67% lettings / 33% sales. ~390 fully managed + 22 HMOs (127 rooms); ~£485k recurring lettings fee income; avg rent £1,400; 232 landlords. Guide £1.25m incl. £84,000 pipeline (cash-free / debt-free) → ~£1.17m ex-pipeline for the whole group. Owners exiting.
Background: Potter & Ford was a profitable ~£450k-turnover Chesham agency (PBT £89,946 to Apr-2024) under prior owners. Shaw & Locke bought it Mar-2025 (funded by a ~£322k Allica Bank loan), then stripped its lettings book into Glinton and sales into Beech — so most current scale is <18 months old with no consolidated trading history.
3Financials — three sets of accounts, different period-ends; no consolidation supplied
| Entity | Latest period | Turnover | Result | Equity |
|---|---|---|---|---|
| Glinton (lettings) | FY to Mar-2025 | £572,257 | PBT £50,009 | +£95k |
| Glinton — MA pack 9m Apr–Dec 2025 | FY26 YTD | £566,117 | Op £107,202 / Net £92,171 | NA £222k |
| Beech (sales) | FY to Mar-2026 (draft) | £338,767 | PBT £13,178 | −£62k |
| Potter & Ford (commercial) | 11m to Mar-2026 | £51,951 | Loss £(25,247) | +£36k |
- Glinton MA pack is the bright spot: 9-mo run-rate annualises to ~£755k turnover / ~£123k net; management fees annualise ~£605k; YTD profit +135% YoY.
- But Beech is balance-sheet insolvent standalone, P&F loses money, and the group carries the £322k Allica loan + intercompany balances. The seller’s BQ left the profits section blank (“we need figures”) — no clean group earnings number.
- The MA pack flags unreconciled bank transactions and chunky owner-flavoured discretionary costs (training/coaching ~£37.6k YTD, subscriptions ~£17.8k, “entertaining” incl. gym/David Lloyd) — some add-backs, some to scrutinise.
4Valuation vs thesis
~£1.17m ex-pipeline for the whole group = ~2.4× recurring lettings fee income if all attributed to lettings; carving out ~£250–350k for the sales business + commercial rump implies ~1.7–1.9× on the lettings book — on-target only if the non-lettings pieces are worth that and earnings prove out.
| Criterion | HouseShaw |
|---|---|
| Lettings-led | 🟠 67% |
| Managed properties | 🟠 390 + 22 HMOs (large / complex) |
| Mgmt-fee income £150–500k | ✅ ~£485k |
| Entry multiple ≤2.5× | 🟠 ~2.4× group |
| Structure (share preferred) | ✅ share sale |
| Transparency | 🔴 weak (no consolidation) |
5Risks & DD gaps
- 🔴 Obtain a consolidated group P&L (FY25 + FY26) and Glinton’s full FY26 accounts.
- 🔴 Share sale inherits everything — confirm “debt-free / cash-free” clears the £322k Allica loan; intercompany schedule + pre-completion reorganisation; tightly-warranted SPA.
- 🟠 33% sales exposure — cyclical, lower-margin, off-thesis.
- 🟠 22 HMOs / 127 rooms — licensing / fire-safety / Article 4 load; complicates the 2-person AI-native target model.
- 🟠 Owners exiting outright — day-one continuity rests on retaining 9 staff; only ~18 months of reorganised history to underwrite retention.
- 🟡 Correct the data error: the seller BQ’s internal note reverses Glinton / Beech (lettings vs sales); accounts confirm Glinton = lettings, Beech = sales. Get it in writing.
6Next steps
- Rachel → AJW: request consolidated accounts, intercompany schedule, HMO licence list, written clarification of the entity / mix mapping.
- Hold at “Under review” pending those; revisit priority once Glenn Flegg progresses.