Interim Management Statement (8686G)
May 19 2011 - 2:00AM
UK Regulatory
TIDMLSL
RNS Number : 8686G
LSL Property Services
19 May 2011
For immediate release 19 May 2011
LSL Property Services plc
("LSL" or "the Group")
Interim Management Statement
LSL, a leading provider of residential property services,
incorporating estate agency and surveying businesses, issues this
Interim Management Statement for the period 1 January 2011 to 17
May 2011.
Since 1 January 2011 the housing market has weakened with House
Purchase Mortgage Approvals for the first quarter down 2.7%
compared to the first quarter of 2010(1) . Market data is not yet
available for April though the extended holiday period at the end
of the month is likely to have had a significant negative
impact.
Against this challenging backdrop the Group has traded in line
with the Board's expectations during the first quarter. Turnover
for the 3 months ended 31 March 2011 compared with the same period
in 2010 and also for the 4 months ended 30 April 2011 was as
follows:
To 31 March To 30 April
Group +6% +3%
Estate Agency +11% +7%
Surveying -2% -5%
--------------- ------------ ------------
Activity levels for April were disappointing as a result of the
extended holiday period, however transaction run rates for the two
weeks from 3 May to 17 May have returned to being in line with
expectations.
Estate Agency :
Estate Agency has performed well and has achieved further market
share gains during the period. In addition there has been good
growth in lettings and financial services income streams
particularly in the ex 'Halifax Estate Agencies' branches which
were acquired in January 2010. The performance of asset management
has been pleasing despite a significant fall in repossession
volumes during the period. Investment in people, marketing and 'The
Bridge' call centre has continued as planned to underpin the next
phase of market share growth and there has been a very positive
early impact on pipelines.
Surveying :
Surveying has traded robustly in the face of low levels of
mortgage activity. Remortgage volumes during the first quarter were
bolstered by expectations of an interest rate rise but activity
levels have subsequently abated. There has been continued growth in
relation to private survey services income in line with our
expectations for this new key initiative and there has been strong
positive customer feedback.
Outlook:
LSL retains a cautious view of the market for 2011 given
continued shortage of available mortgage finance and general
economic uncertainty.
Despite this market uncertainty the Board remains confident in
delivering further progress in 2011, particularly in light of the
very encouraging results to date from the market share growth plans
both in Estate Agency and from private survey services within
Surveying. The anticipated time lag between the cost of investment
in Estate Agency and revenue realisation will result in profits
being more weighted towards the second half of the year.
Even without recovery of market transaction volumes the Group is
well placed to increase shareholder value through its major organic
growth initiatives and use of its strong balance sheet to make
further value accretive acquisitions.
(1) Source : Bank of England
For further information, please contact:
Simon Embley, Group Chief Executive Officer
Steve Cooke, Group Finance Director
LSL Property Services plc 0203 215 1015
Richard Darby, James Strong
Buchanan Communications 0207 466 5000
Notes to Editors:
LSL Property Services plc is one of the leading residential
property services companies in the UK and provides a broad range of
services to its two key customer groups. Services to consumers
include: estate agency, lettings, surveying 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 our website: www.lslps.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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