TIDMLSL
RNS Number : 0492B
LSL Property Services
28 January 2020
For immediate release 28 January 2020
LSL Property Services plc ("LSL")
Full Year Trading Update
LSL Property Services plc, a leading provider of residential
property services incorporating estate agency, financial services
and surveying businesses, issues a trading update for the year
ended 31(st) December 2019.
Overview
We anticipate full year Group Underlying Operating Profit(1) for
the year ended 31(st) December 2019 will be slightly ahead of the
Board's prior expectations and slightly ahead of last year which is
a highly resilient performance in the context of challenging
residential market conditions during 2019.
Group revenues for the year ended 31(st) December 2019 decreased
by 4% including the impact of the reshaping of the Your Move and
Reeds Rains branch networks announced on 5(th) February 2019.
Excluding the impact of the planned closure of the Your Move and
Reeds Rains branches during Q1 2019, Group revenues for the year
ended 31(st) December 2019 increased by 4%.
Estate Agency Division performance
For the twelve month period ended 31(st) December 2019, Estate
Agency(2,3) revenue was down by 16%, materially impacted by the
planned reduction in the size of the Your Move and Reeds Rains
branch networks during Q1 2019. Excluding the impact of the closure
of the Your Move and Reeds Rains branches, Estate Agency revenue(4)
for the twelve-month period was down 4%.
Whilst London market conditions continued to be challenging
during the year, Marsh & Parsons delivered a resilient revenue
performance over the twelve month period with total revenue down
3%. Residential exchange income was down by 5% and Lettings income
declined by 2%.
Financial Services Division performance
Revenue performance for the Financial Services Division for the
twelve month period is as follows:
-- Financial Services organic revenue growth was 1% year on year, excluding Estate Agency
-- Total Financial Services Division(2) revenue including Estate
Agency for the year was down by 2%, reflecting the impact of the
planned closure of the Your Move and Reeds Rains branches
-- Total appointed representative firms increased by 4% with a
3% increase in the number of financial advisers
Surveying Division performance
The Surveying Division delivered a revenue performance growing
24% year on year, which included a material contribution from the
successful commencement of the Lloyds Bank plc surveying and
valuation services relationship.
Strong balance sheet
At 31(st) December 2019 the Group had net banking debt of
GBP41.9m (2018: GBP32.1m), which is a level of gearing the Board is
comfortable with.
Outlook and notice of results
Whilst it is too early in the year to give a view on the 2020
market outlook, the combination of increased political stability
and a favourable LSL estate agency sales pipeline on 1(st) January
2020 compared to the LSL Board's prior expectations provide a
positive backdrop to the start of 2020.
We will provide our view on 2020 outlook with the release of our
Preliminary results for the year ended 31(st) December 2019. LSL
will report 2019 full year results on 10(th) March 2020.
Notes to trading update
1. Group Underlying Operating Profit is before exceptional gains
and exceptional costs, contingent consideration, amortisation of
intangible assets, share--based payments and on an IFRS16 basis
2. Following the change to LSL's segment reporting effective
from 1st January 2019, the Estate Agency Division receives a
commercially agreed commission payment from the Financial Services
segment. This arrangement reflects Financial Services income
generated from the Estate Agency segment. The 2018 revenue has been
restated on this basis to assist comparison
3. Estate Agency Division revenue metrics presented in this
statement include Marsh & Parsons Revenue
4. Revenues have been restated on a like for like basis to
exclude the impact of the closure of the Your Move and Reeds Rains
branches during Q1 2019
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
Helen Tarbet, Simon Compton
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 support, and mortgage,
pure protection and general insurance brokerage services. Services
to mortgage lenders include: valuations and panel management
services, and asset management and property management services.
For further information, please visit LSL's website:
lslps.co.uk
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END
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