LSL Property Services Trading Update (7795X)

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RNS Number : 7795X

LSL Property Services

29 November 2017

29(th) November 2017

LSL Property Services plc ("LSL")

Trading Update

LSL, a leading provider of residential property services incorporating both estate agency and surveying businesses, issues a trading update for the period up to 31(st) October 2017.

Group Performance and Outlook

Group revenues for the ten months ended 31(st) October 2017 increased by 1.1% to GBP260.9m (2016: GBP258.0m) with Estate Agency up by 1.6% and Surveying down by 0.7%.

Group revenues for the four months ended 31(st) October 2017 of GBP109.4m (2016: GBP106.6m) were 2.6% higher year on year. Whilst Residential Sales exchange income was down by 2% in the same period reflecting lower exchange volumes, strong performances were delivered in Lettings revenue (+4%) and Financial Services revenue (+17%) demonstrating the strength of the Group through its broad range of businesses across the residential property services sector.

The percentage change in revenue for the three months ended 30(th) September 2017, the four months ended 31(st) October 2017 and also for the ten months ended 31(st) October 2017 is set out below:

 
                        3 months   4 months   10 months 
                        to 30      to 31      to 31 
                         Sept       Oct        Oct 
 Group                     3%         3%         1% 
 Estate Agency             4%         4%         2% 
 -Residential 
  sales                   -1%        -2%         -9% 
 -Lettings income          3%         4%         4% 
 -Financial Services 
  income                  16%        17%         16% 
 Surveying                -4%        -5%         -1%

The Board anticipates the full year 2017 Group Underlying Operating Profit(1) will be marginally ahead of its prior expectations.

Market activity levels have remained subdued throughout 2017. With continued uncertainty over UK economic conditions and the UK and global political environment, we continue to remain cautious on the market outlook for 2018.

UK Government Autumn Budget

LSL notes the changes to Stamp Duty for first time buyers and the increased support for the construction of new homes in the UK Government Autumn Budget on 22(nd) November 2017 and LSL will monitor the impact on the UK housing market going forwards.

Balance Sheet Update

Net Bank Debt at 31 October 2017 was GBP42.3m (2016: GBP43.5m).

As reported in the Interims in August 2017, the Group completed the sale of its investment in the Guild of Professional Estate Agents (GPEA) on 12(th) July 2017 with consideration made up of cash (GBP3m) and ordinary shares in eProp Services plc. We expect to disclose a gain on disposal for this item of GBP5.6m as an exceptional item in the 2017 Financial Statements.

Note to trading update

(1) Group Underlying Operating Profit is before exceptional gains and exceptional costs, contingent consideration, amortisation of intangible assets and share-based payments

For further information, please contact:

 
 Ian Crabb, Group Chief Executive 
  Officer 
 Adam Castleton, Group Chief 
  Financial Officer 
 LSL Property Services plc           0207 382 0360 
 
 David Rydell, Richard Darby, 
  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 mortgage, pure protection and general insurance brokerage services. 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

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