LSL Property Services Interim Management Statement (5265G)
May 08 2014 - 2:01AM
UK Regulatory
TIDMLSL
RNS Number : 5265G
LSL Property Services
08 May 2014
For Immediate Release 8 May 2014
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 from 1 January 2014 to
7 May 2014.
The number of Total Mortgage Approvals(1) for the three months
to 31 March 2014 was 25% higher than for the same period in 2013.
House Purchase Approvals(1) were 35% higher on the same comparative
basis. Market data is not yet available for April.
The Group has traded very strongly during the period driven by
good pipeline conversion. The percentage change in turnover for the
three months ended 31 March 2014 and also for the four months ended
30 April 2014 compared with the same periods in 2013 is set out
below:
3 months to 31 4 months to 30
March April
Group 25% 22%
Estate Agency 26% 24%
Surveying 21% 14%
--------------- --------------- ---------------
The market began to improve from April 2013 onwards and while
comparatives will be more challenging for the rest of the year, it
is still expected that there will be significant growth in market
transaction volumes in 2014.
Estate Agency and Related Services:
The Estate Agency Division has traded very strongly in the four
months to 30 April 2014:
- Total income up 24% year on year
- Exchange income increased by 34% year on year
- Lettings income growth of 12% year on year
- Financial Services income up 33% year on year
- Marsh & Parsons total revenue up 23% year on year with one
new branch opening to date in 2014 with further openings
planned
- Continued success targeting selective smaller acquisitions
with the purchase of Hawes and Co, a six branch estate agency chain
trading in South London
- Asset management revenue down 10% year on year in a challenging market
Surveying and Valuation Services:
The Surveying Division has traded well during the four months to
30 April 2014:
- Revenue increased by 14% year on year
- Some impact on April revenue as a result of the implementation
of changes to mortgage application processing by lenders following
the Mortgage Market Review (MMR)
- On-going investment in recruitment to build capacity for clients
- Professional Indemnity costs ran in line with expectations during the period
Outlook:
Market volumes have now grown year on year for each of the last
twelve months. On-going improvement in key economic indicators
support the Board's continued positive view of the market for 2014
despite some early evidence of slowdown in the rate of mortgage
applications and approvals following the implementation of changes
from MMR. It remains to be seen how full year transaction levels
will be impacted.
LSL remains committed to its strategy of driving organic growth
and evaluating selective acquisitions during a period of market
growth. The investments made last year in the Estate Agency
Division have driven strong performance during the first quarter of
2014 and the Division will continue to selectively invest in order
to optimise future returns. The Surveying Division will continue to
invest in additional capacity in a market where supply remains
constrained.
The Group has a strong balance sheet and is extremely cash
generative. The business is well placed to increase shareholder
value by driving benefit from operational gearing in the growing
market with potential additional benefit from selective
acquisitions.
(1) Source: Bank of England
For further information, please contact:
Ian Crabb, Group Chief Executive Officer
Steve Cooke, Group Finance Director
LSL Property Services plc 0207 382 0360
Richard Darby and Sophie McNulty
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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