Interim Management Statement (5209R)
November 04 2011 - 6:53AM
UK Regulatory
TIDMLSL
RNS Number : 5209R
LSL Property Services
04 November 2011
For Immediate Release 4 November 2011
LSL Property Services plc
("LSL" or the "Group")
Interim Management Statement
and
Board Appointment
LSL, a leading provider of residential property services,
incorporating estate agency and surveying businesses, issues this
Interim Management Statement for the period 1 July 2011 to 31
October 2011.
Since 1 July 2011, the housing market has improved slightly with
House Purchase Mortgage Approvals for quarter three up 8% compared
to the same period in 2010 (1) . However, for the 9 months from
January to September, House Purchase Mortgage Approvals are flat
year on year. Market data is not yet available for October.
Against this backdrop, LSL's trading has been satisfactory for
the 3 months ended 30 September but has been more challenging
during October. Turnover for the 9 months ended 30 September 2011
compared with the same period in 2010 and also for the 10 months
ended 31 October 2011 was as follows:
To 30 September To 31 October
Group +3% +2%
Estate Agency +9% +8%
Surveying -7% -7%
Cash generation remains strong and net debt at 31 October 2011
was GBP9.4m (as at 31 October 2010 GBP13.7m). LSL remains on track
to be in a net cash position at the year end before the impact of
the Marsh and Parsons acquisition.
Estate Agency
Estate Agency has continued to make good progress with benefits
flowing from the investments made in branch management and 'The
Bridge' call centre. Estate Agency pipelines at 31 October 2011
were 9% higher than on 31 October 2010. The Estate Agency branches
are also building on the momentum generated earlier in the year
with further strong increases in lettings and financial services
income. In addition, a number of small lettings businesses have
been acquired during 2011 as the business continues to diversify
revenue streams.
The Asset Management business is performing well in an
environment where repossession volumes are lower than in 2010.
Surveying Division
Surveying has traded well despite low levels of mortgage
activity requiring physical survey valuations. As expected,
performance against key lender client prior year comparatives has
improved in quarter three with Surveying income 7% lower for the 10
months to 31 October compared to 9% lower for the 6 months to 30
June as reported in the interim results.
Surveying services for private buyers are continuing to build in
line with our expectations.
Board
Following the Group's previous announcement of its intention to
strengthen the Board, Helen Buck is joining LSL as Non Executive
Director from 1 December 2011. Helen is currently Convenience
Director and a member of the Operating Board of Sainsbury's
Supermarkets Ltd, part of J Sainsbury plc. Helen has previously
held senior Retail and Marketing positions at Sainsbury's
Supermarkets Ltd, Marks and Spencer Group plc, Woolworths PLC and
Safeway plc.
In accordance with the requirements of 9.6.15 of the Listing
Rules, LSL confirms that no notification is required pursuant to
the provisions of 9.6.13 in relation to Helen Buck.
Roger Matthews, LSL Chairman, commented: "I am delighted to
welcome Helen to the LSL Board. I am confident that she will make a
valuable contribution to the development and growth of the
business."
Outlook
Market conditions are challenging and uncertain and LSL has an
increasingly cautious view of 2012. The current housing market
continues to be impacted by the continued shortage of available
mortgage finance, the general economic uncertainty and the
increasing pressure on household budgets and consumer
confidence.
Against this difficult backdrop, LSL will continue to focus on
growing market share and profitability in Estate Agency, developing
surveying services for private buyers and capitalising on the
growth opportunities arising from the Marsh and Parsons
acquisition. The Group is well positioned to increase shareholder
value through delivery of these initiatives.
(1) Source: Bank of England
For further information, please contact:
Simon Embley, Group CEO
Steve Cooke, Group Finance Director
LSL Property Services plc 0207 382 0365
Richard Darby
Nicola Cronk
Buchanan 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 clients who are principally mortgage lenders, as
well as buyers and sellers of residential properties. 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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