LSL Property Services Interim Management Statement (1547R)
November 15 2012 - 2:00AM
UK Regulatory
TIDMLSL
RNS Number : 1547R
LSL Property Services
15 November 2012
For Immediate Release 15 November 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 July 2012 to 14 November 2012.
Housing market transaction levels have deteriorated in the
period with Total Mortgage Approvals(1) for the third quarter of
2012 14.5% lower than the third quarter of 2011 and House Purchase
Approvals(1) 6.7% lower on the same comparative basis. Total
Mortgage Approvals for the 9 months from January to September 2012
were down 6.5% year on year while House Purchase Approvals were
2.1% higher for the same period. Market data is not yet available
for October, although the anticipated improvement in mortgage
lending volumes for the fourth quarter has not yet
materialised.
Against this backdrop trading has been satisfactory during the
period. Turnover for the 10 months ended 31 October 2012 compared
with the same period in 2011 is set out below both in total and on
a like-for-like basis (excluding Marsh & Parsons):
Total LFL
10 mths to 31 10 mths to 31
Oct Oct
Group +14% +1%
Estate Agency +31% +11%
Surveying -16% -16%
--------------- --------------- --------------
Activity levels were subdued over the Summer and these
conditions persisted longer than expected into September. October
transaction run rates were in line with expected levels and this
momentum has been maintained up to 14 November.
Estate Agency & Related Services:
Estate Agency has performed well with continued strong growth in
lettings and financial services. Excluding Marsh & Parsons,
lettings income for January to October increased by 25% and
financial services income increased by 13%. Residential sales
income grew by 7% including the benefit of significant fee
improvement.
Despite a more challenging London housing market where stock
levels have been impacted by stamp duty increases and ongoing
concerns over possible future property taxes, Marsh & Parsons
has continued to make good progress and to benefit from its strong
lettings income stream.
Asset management has outperformed the market with a year on year
revenue increase of 4% for January to October compared to a decline
in repossession volumes of 8% for the period January to
September.
Surveying & Valuation Services:
Surveying performance has been satisfactory relative to the
market. Revenue has been reduced by the impact of key contractual
changes during 2012, which had been expected, and by the reduction
in market share of certain lenders. There has been continued growth
in the provision of private survey services where the annual income
run rate is now GBP5.0m.
Professional Indemnity costs have been in line with expectations
for the period since 1 July. The run rates of new notifications,
new claims and costs per claim have been consistent with the
assumptions made when the exceptional charge was made at the half
year.
Outlook:
Market volumes have recently been declining at a worsening rate
as the constraints on available mortgage finance have not improved
and this has been compounded by continued general economic
uncertainty. Despite this, the business is currently trading
robustly and in line with management's expectations. However the
Board retains its very cautious view of the market for 2013.
Against this difficult market backdrop, the Group will continue
to build on this year's strong growth in lettings and financial
services and to further develop the provision of surveying services
to private buyers. LSL will also accelerate investment in
initiatives to drive growth in corporate lettings and asset
management, to increase market share in estate agency and to
increase the pace of new branch openings in Marsh &
Parsons.
The Group is extremely cash generative and has relatively low
levels of gearing. LSL is well placed to combine its organic growth
initiatives with further selective acquisitions to increase
shareholder value in the medium term.
(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, Sophie McNulty and Helen Greenwood
Buchanan 0207 466 5000
Notes to Editors:
LSL Property Services plc is a leading provider of residential
property services 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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