RNS Number : 1349V
  LSL Property Services
  23 May 2008
   

 For Immediate Release  23 May 2008
    

    LSL Property Services plc

    Trading Update


    LSL Property Services plc, a leading provider of financial and surveying services and residential estate agency, issues the following
update on current trading.

    In our AGM update on trading for the first quarter of the current financial year, we reported that whilst we expected market conditions
to remain very challenging for the remainder of the year we were more confident about the resilience of our surveying division results,
which contribute an ever growing proportion of Group profits. 

    The Surveying division continues to perform strongly and above our expectations, supported by a robust re-mortgage market, last year's
contract wins and strong relationships with lenders. As a consequence we remain confident of making further progress in surveying this
year.

    However, as has been widely reported, conditions in the housing market during the second quarter have deteriorated further and the
current levels of housing transaction volumes are at an unprecedented low level. Trading in our Estate Agency division has been affected in
line with the market and, as a result, we are now planning for a significantly weaker performance for the division in the current year.

    We continue to take further action to reduce the cost base to reflect these lower activity levels, which to date will result in one off
costs estimated at £3m with a payback in profitability terms in early 2009. We also continue to focus on the non transactional income
streams including financial services, lettings and repossessions.

    Recent measures taken by the Government and the Bank of England both to help first time buyers and to ease the liquidity crisis are
welcome. It is too early to predict whether or not these initiatives alone will have a marked effect but other limited measures remain
available to further stimulate the UK housing market. The Group has not factored in any upturn in the market for the remainder of 2008.



    For further information please contact:


 Simon Embley, Group Chief Executive Officer
 Dean Fielding, Group Finance Director 
 LSL Property Services plc                    01904 715 324

 Richard Darby or Nicola Cronk
 Buchanan Communications                      020 7466 5000

This information is provided by RNS
The company news service from the London Stock Exchange
 
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