LSL Property Services Trading Update (2256N)
January 28 2016 - 2:00AM
UK Regulatory
TIDMLSL
RNS Number : 2256N
LSL Property Services
28 January 2016
28 January 2016
LSL Property Services plc ("LSL" or "the Group")
Trading Update
LSL Property Services plc, a leading provider of residential
property services incorporating both estate agency and surveying
businesses, announces a trading update for the year ended 31
December 2015.
Overview
We are pleased to have delivered a strong second half
performance across the Group and we anticipate full year Group
Underlying Operating Profit* for the year ended 31 December 2015
will be slightly ahead of last year.
LSL has a strong balance sheet, strong levels of cash generation
and is well placed to increase shareholder value through continuing
to deliver on its strategy.
Estate Agency Division performance
The Estate Agency Division traded well in the second half
following a slower first half. The revenue performance for the 12
month period is as follows:
-- Overall Estate Agency Division income up 5% year on year
-- Exchange income increased 1% year on year
-- Lettings income increased 12% year on year
-- Financial Services income was up 16% year on year
-- On-going focus on lettings book acquisitions - LSL acquired
30 lettings books in 2015 for a total consideration of GBP9.6
million, a significant increase on calendar 2014 when LSL acquired
10 lettings books for a total consideration of GBP1.8 million
-- Marsh & Parsons total revenue was up 9% year on year with
two new branch openings in Shoreditch and Queens Park
-- On-going evaluation of estate agency acquisitions with the
purchase of Thomas Morris, a multi award winning seven branch
estate agency which trades in Cambridgeshire, Bedfordshire and
Hertfordshire
Surveying Division performance
The Surveying Division traded well in the second half:
-- Revenue growth was 3% year on year for the 12 month period
-- On-going capacity management to manage demand from clients resulting in improved margins
-- Technology refresh in progress
Strong balance sheet
At 31 December 2015 the Group had net banking debt of GBP39.9m
(2014: GBP34.7m). The Board is comfortable with the level of
gearing.
Strategy
LSL remains committed to its Estate Agency Division strategy of
increasing operating profit per branch; expanding the number of
Marsh & Parsons branches; growing recurring lettings revenue
streams; and evaluating selective acquisitions.
In the Surveying Division we continue to focus on maximising
revenue generation from B2B customers, optimising capacity
management and enhancing the use of technology across the
business.
Notice of results
We will provide our view on 2016 outlook with the announcement
of our Preliminary results for the year ended 31 December 2015
which is due to be announced on 3 March 2016.
Notes to trading update
*Underlying Operating Profit is before exceptional gains and
exceptional costs, contingent consideration, amortisation of
intangible assets and share-based payments
All figures quoted in this update are unaudited
For further information, please contact:
Ian Crabb, Group Chief Executive
Officer
Adam Castleton, Group Finance
Director
LSL Property Services plc 0207 382 0360
Richard Darby, Sophie McNulty
Buchanan 0207 466 5000
Notes on LSL:
LSL is a leading provider of residential property services to
its key customer groups. Services to consumers include: residential
sales, lettings, surveying, conveyancing 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 LSL's 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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