LSL Property Services Full Year Trading Update (6878N)
January 22 2019 - 2:00AM
UK Regulatory
TIDMLSL
RNS Number : 6878N
LSL Property Services
22 January 2019
For immediate release 22(nd) January 2019
LSL Property Services plc ("LSL")
Full Year 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(st)
December 2018.
Overview
We are pleased to have delivered a positive second half
performance across the Group. We anticipate full year Group
Underlying Operating Profit(1) for the year ended 31(st) December
2018 will be slightly ahead of the Board's prior expectations and
slightly behind last year which is a highly resilient performance
in the context of challenging residential market conditions during
2018.
Group revenues for the year ended 31(st) December 2018 increased
by 4% reflecting overall growth in both Divisions: Estate Agency up
3% and Surveying up 9%.
Estate Agency Division performance
The Estate Agency Division revenue performance for the 12 month
period is as follows:
-- Overall Estate Agency Division income up 3% year on year
-- Exchange income decreased 9% year on year
-- Lettings income increased 4% year on year (organic growth 3%)
-- Financial Services income was up 17% year on year, including
the acquisitions of PTFS and RSC during 2018 (organic growth
1%)
-- Marsh & Parsons delivered a good revenue performance
despite a challenging London market. Total revenue was down 2% year
on year as Lettings income continued to perform positively with
growth of 4% largely offsetting the 13% fall in Residential
Exchange revenue. One new branch was opened during the year in
Chiswick
-- Six lettings book acquisitions were made during 2018 in line with our stated strategy
We continue to progress the ways of working programme with the
objective of delivering improvements to the Estate Agency
operational performance and enhancing market competitiveness.
Surveying Division performance
The Surveying Division delivered a strong revenue performance
which included a material contribution in the second half from the
successful commencement of the Lloyds Bank plc surveying and
valuation services relationship:
-- Surveying Revenue was down 6% year on year in the first half,
up 25% year on year in the second half and up 9% for the 12 month
period
-- The initial performance of the contract for the supply of
surveying and valuation services to Lloyds Bank plc is in line with
expectations
-- The Surveying Division continued to deliver strong operating margins
-- Reduced PI costs payments during 2018 compared to the previous year
Strong balance sheet
At 31(st) December 2018 the Group had net banking debt of
GBP32.1m (31(st) December 2017: GBP30.0m). The Board is comfortable
with the level of gearing.
Outlook and notice of results
In line with our November trading statement, we continue to
remain cautious on the market outlook for 2019 given the continued
uncertainty over the UK and global political environment and the
potential impact on UK consumer confidence. Nevertheless, we are
confident that LSL, with its market leading brands and broad
portfolio of property services, remains well positioned.
We will provide further guidance for 2019 with the release of
our Preliminary results. LSL intends to issue its Preliminary
results on Tuesday 5(th) March 2019.
Notes 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
All figures quoted in this update are unaudited.
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, Helen Tarbet, Sophie
Wills
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
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contact rns@lseg.com or visit www.rns.com.
END
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