Interim Management Statement (5175D)

TIDMLSL

RNS Number : 5175D

LSL Property Services

17 May 2012

 
 For Immediate Release   17 May 2012

LSL Property Services plc

("LSL" or "the Group")

Interim Management Statement

LSL, a leading provider of residential property services, incorporating Estate Agency and Related Services and Surveying and Valuation Services businesses, issues this Interim Management Statement for the period from 1 January 2012 to 16 May 2012.

The housing market has remained subdued in the period with Total Mortgage Approvals for the first quarter flat compared to the first quarter of 2011(1) and the year on year growth trend for both Total Mortgage Approvals and House Purchase approvals has declined over each of the last three months. Market data is not yet available for April.

Against this backdrop the Group has traded in line with the Board's expectations during the period. Turnover for the 3 months ended 31 March 2012 compared with the same period in 2011 and also for the 4 months ended 30 April 2012 is set out below both in total and on a like-for-like basis (excluding Marsh & Parsons):

 
                            Total        Total         LFL         LFL 
                 ---------------- 
                     3 mths to 31    4 mths to   3 mths to   4 mths to 
                              Mar       30 Apr      31 Mar      30 Apr 
                 ---------------- 
 Group                       +22%         +20%         +9%         +8% 
 Estate Agency               +40%         +37%        +19%        +17% 
 Surveying                    -7%          -8%         -7%         -8% 
---------------  ----------------  -----------  ----------  ----------

Following strong trading in March, which was helped by changes to stamp duty, activity levels for April were disappointing. Transaction run rates for the two weeks from 1 May to 16 May have returned to being in line with expectations.

Estate Agency and Related Services:

Estate Agency has traded well and in particular there has been strong like-for-like year on year growth in lettings and financial services of 23% and 24% respectively. Residential sales income has been restricted by low instruction volumes and stock levels, including the London market. Marsh & Parsons has performed in line with expectations and opened a new branch in Earls Court in April, which has made a good start. Asset Management increased revenue by 9% in the first quarter in a market where repossessions were flat year on year.

Surveying and Valuation Services:

Surveying performance has been satisfactory given both continued low levels of mortgage activity, including a 12% reduction in remortgage volumes compared to the first quarter of 2011 and further reductions in market share among some of our key lender clients. There has been continued growth of private survey services income.

Outlook:

While there has been some improvement in consumer confidence this has been more than offset by a further reduction in the availability of mortgage credit driven by tighter prudential regulation, decline in supply of wholesale funding and tighter product regulation. Overall LSL retains a cautious view of the market for 2012 particularly given the recent deterioration in prospects for the Eurozone which may cause the banks to restrict mortgage supply further.

However, the Board is confident of delivering further progress in 2012, through its major organic growth initiatives, including lettings and the contribution from new income streams in both Estate Agency and Related Services and Surveying and Valuation Services. The Group remains well placed to increase shareholder value and will continue to pursue value accretive acquisitions using its strong balance sheet.

(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, Nicola Cronk, Louise Hadcocks

Buchanan 0207 466 5000

Notes to Editors:

LSL Property Services plc is a leading provider of residential property to its two key customer groups. Services to consumers include: residential sales, 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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