Trading Update

RNS Number : 2256N

LSL Property Services

28 January 2016

 

28 January 2016

LSL Property Services plc ("LSL" or "the Group")

Trading Update

LSL Property Services plc, a leading provider of residential property services incorporating both estate agency and surveying businesses, announces a trading update for the year ended 31 December 2015.

Overview

We are pleased to have delivered a strong second half performance across the Group and we anticipate full year Group Underlying Operating Profit* for the year ended 31 December 2015 will be slightly ahead of last year.

LSL has a strong balance sheet, strong levels of cash generation and is well placed to increase shareholder value through continuing to deliver on its strategy.

Estate Agency Division performance

The Estate Agency Division traded well in the second half following a slower first half. The revenue performance for the 12 month period is as follows:

·     Overall Estate Agency Division income up 5% year on year

·     Exchange income increased 1% year on year

·     Lettings income increased 12% year on year

·     Financial Services income was up 16% year on year

·     On-going focus on lettings book acquisitions - LSL acquired 30 lettings books in 2015 for a total consideration of £9.6 million, a significant increase on calendar 2014 when LSL acquired 10 lettings books for a total consideration of £1.8 million

·     Marsh & Parsons total revenue was up 9% year on year with two new branch openings in Shoreditch and Queens Park

·     On-going evaluation of estate agency acquisitions with the purchase of Thomas Morris, a multi award winning seven branch estate agency which trades in Cambridgeshire, Bedfordshire and Hertfordshire

Surveying Division performance

The Surveying Division traded well in the second half:

·     Revenue growth was 3% year on year for the 12 month period

·     On-going capacity management to manage demand from clients resulting in improved margins

·     Technology refresh in progress

Strong balance sheet

At 31 December 2015 the Group had net banking debt of £39.9m (2014: £34.7m). The Board is comfortable with the level of gearing.

Strategy

LSL remains committed to its Estate Agency Division strategy of increasing operating profit per branch; expanding the number of Marsh & Parsons branches; growing recurring lettings revenue streams; and evaluating selective acquisitions.

In the Surveying Division we continue to focus on maximising revenue generation from B2B customers, optimising capacity management and enhancing the use of technology across the business.

Notice of results

We will provide our view on 2016 outlook with the announcement of our Preliminary results for the year ended 31 December 2015 which is due to be announced on 3 March 2016.

Notes to trading update

*Underlying Operating Profit is before exceptional gains and exceptional costs, contingent consideration, amortisation of intangible assets and share-based payments

All figures quoted in this update are unaudited

For further information, please contact:

Ian Crabb, Group Chief Executive Officer
Adam Castleton, Group Finance Director
LSL Property Services plc	0207 382 0360
Richard Darby, Sophie McNulty
Buchanan	0207 466 5000

Notes on LSL:

LSL is a leading provider of residential property services to its key customer groups.  Services to consumers include: residential sales, lettings, surveying, conveyancing and advice on mortgages and non-investment insurance products. Services to mortgage lenders include: valuations and panel management services, asset management and property management services. For further information, please visit LSL's website: www.lslps.co.uk

 

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