LSL Property Services AGM Statement (5826W)
April 28 2016 - 2:01AM
UK Regulatory
TIDMLSL
RNS Number : 5826W
LSL Property Services
28 April 2016
For immediate release 28 April 2016
LSL Property Services plc ("LSL" or "Group")
AGM Statement
LSL Property Services plc, a leading provider of residential
property services incorporating both estate agency and surveying
businesses, is holding its Annual General Meeting (AGM) today in
London, where the following comments will be made regarding current
trading, financial performance and outlook for the current
financial year.
Market Backdrop:
Market volumes, as measured by Bank of England Total Mortgage(1)
and Total House Purchase Approvals(1) , have increased
significantly in the first two months of 2016 compared to the same
period in 2015. This reflected accelerating Buy-to-Let market
activity ahead of the 1 April changes in Stamp Duty, compared to
the same period in 2015.
The number of Total Mortgage Approvals(1) for the two months to
29 February were up 25.1% relative to the corresponding period last
year, whilst the number of House Purchase Approvals(1) were up
21.0% on the same comparative basis. Although market volumes from
the Bank of England are not yet available for March 2016, market
estimates indicate very strong volumes in March as completions
accelerated still further ahead of the Stamp Duty changes.
We expect that the acceleration of market activity in quarter
one caused by the changes in Stamp Duty will soften in quarter two
and we have already seen this trend in our April trading.
Group Performance:
The Group has traded well year to date. Group revenues for the
three months ended 31 March 2016 increased by 16.9% year on year as
we benefited from the pre-Stamp Duty acceleration in market
activity. The percentage increase in revenue for each of the two
and three month periods ended 29 February 2016 and 31 March 2016
respectively is set out below:
2 months 3 months
to 29 to 31
February March
--------------- --------- --------
Revenue
Group 12.6% 16.9%
Estate Agency 14.2% 19.9%
Surveying 7.0% 6.3%
--------------- --------- --------
Estate Agency and Related Services:
The Estate Agency Division has traded well during the first
three months of 2016 with the growth in exchange income, lettings
income and financial services income demonstrating the benefits of
LSL's Estate Agency strategy.
-- Total Estate Agency revenue increased by 19.9% year on year
-- Exchange income increased by 30.4% year on year
-- Lettings income growth of 13.0% year on year
-- Financial Services income growth of 27.9% year on year
-- Acquisition of a 65.0% interest in Group First Limited in
February 2016, which provides mortgage and protection brokerage
services to the purchasers of new homes through its subsidiaries,
Mortgages First Limited and Insurance First Brokers Limited
-- Marsh & Parsons revenue growth of 36.3%
-- Marsh & Parsons opened a branch in Tooting during the period to date in 2016
-- Continued focus on investment in letting book acquisitions
with seven letting books acquired during the period to date in 2016
for a total consideration of GBP3.3m (2015: GBP2.7m)
Surveying and Valuation Services:
The Surveying Division has traded well during the first three
months of 2016:
-- Surveying income increased by 6.3% year on year
-- Continued focus on capacity utilisation and optimising
contract performance and revenue generation from B2B customers
-- Professional indemnity costs were in-line with expectations during the period
-- Technology refresh in progress
Strategy:
LSL's continuing Estate Agency strategy is to increase operating
profit per branch; expand the number of Marsh & Parsons
branches; grow recurring revenue streams and evaluate selective
acquisitions. LSL's continuing Surveying strategy is to maximise
revenue generation from B2B customers and optimise capacity
management.
Outlook:
We expect that the strong market activity in quarter one will
soften in quarter two, caused in part by some caution among both
buyers and sellers in the run up to the EU Referendum on 23 June.
The outlook for the year as a whole continues to be in-line with
the Board's expectations.
The Group has a strong balance sheet, is extremely cash
generative and is well placed to increase shareholder value in a
changing market with potential additional benefit from selective
acquisitions.
1 Source: Bank of England for "House Purchase Approvals" and
"Total Mortgage Approvals" 2015 & 2016
For further information, please contact:
Ian Crabb, Group Chief
Executive Officer
Adam Castleton, Group Chief
Financial Officer
LSL Property Services plc 0207 382 0360
Richard Darby, Sophie McNulty,
Sophie Cowles
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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