LSL Property Services Trading Update (5421I)

TIDMLSL

RNS Number : 5421I

LSL Property Services

27 November 2018

For Immediate Release 27(th) November 2018

LSL Property Services plc ("LSL")

Trading Update

LSL Property Services plc, 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 2018.

Group Performance and Outlook

The Board anticipates the full year 2018 Group Underlying Operating Profit(1) will be in line with its prior expectations.

Group revenues for the ten months ended 31(st) October 2018 increased by 3.7% to GBP270.5m (2017: GBP260.9m) with Estate Agency up by 3.4% and Surveying up by 4.7%. Group revenues for the four months ended 31(st) October 2018 of GBP117.6m (2017: GBP109.4m) were 7.5% higher year on year, demonstrating the strength of the Group through its broad range of businesses across the residential property services sector.

In the Estate Agency Division(2) , whilst Residential Sales exchange income was down by 5% in the same four-month period reflecting lower exchange volumes, strong performances were delivered in Lettings income (+4%) and Financial Services income (+15%).

Over the same four-month period, Marsh & Parsons delivered a good revenue performance despite a challenging London market with total revenue up 3%. Lettings income continued to perform positively with growth of 4% offsetting the 5% fall in Residential Exchange revenue.

The Surveying Division delivered a strong performance in the same period with income 22% higher year on year, which included a material contribution from the successful commencement of the Lloyds Bank plc surveying and valuation services relationship.

The percentage change in revenue for the three months ended 30(th) September 2018, the four months ended 31(st) October 2018 and also for the ten months ended 31(st) October 2018 is set out below:

 
                        3 months   4 months   10 months 
                         to 30      to 31      to 31 
                         Sept       Oct        Oct 
 Group                  5%         7%         4% 
 Estate Agency(2)       3%         4%         3% 
 -Residential sales     -6%        -5%        -9% 
 -Lettings income       4%         4%         4% 
 -Financial Services 
  income                13%        15%        18% 
 Marsh & Parsons        5%         3%         -1% 
 Surveying              15%        22%        5%

Market activity levels have remained subdued in 2018. With continued uncertainty over the UK and global political environment and the impact on UK consumer confidence, we continue to remain cautious on the market outlook for 2019.

Balance Sheet Update

Net Bank Debt at 31(st) October 2018 was GBP47.4m (2017: GBP42.3m). The increase in Net Debt of GBP5.1m year on year includes the funding of the two Financial Services acquisitions (PTFS and RSC), one Financial Services investment (Mortgage Gym) and the recommencement of lettings book acquisitions.

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

(2) Estate Agency Division revenue metrics presented in this statement include Marsh & Parsons revenue

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, Sophie Wills, Gemma 
  Mostyn-Owen 
 Buchanan                                  0207 466 5000

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END

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