TIDMLSL
RNS Number : 7710L
LSL Property Services PLC
15 January 2021
For Immediate Release 15 January 2021
LSL Property Services plc ("LSL" or "Group")
FULL YEAR TRADING UPDATE
LSL reports very strong trading in December with full year 2020
Group Underlying Operating Profit expected to be significantly
ahead of 2019
LSL, a leading provider of residential property services
incorporating mortgage intermediation and other financial services,
surveying and valuation businesses, and estate agency businesses,
issues a trading update for the year ended 31 December 2020.
Highlights
-- Trading was stronger than our internal expectations in
December in the Financial Services and Surveying Divisions, and we
anticipate an improved Group Underlying Operating Profit(1) for the
year ended 31 December 2020 of around GBP41.5m. This is stated
before the recognition of Covid-19 related net costs and includes
amounts received through the Government Coronavirus Job Retention
Scheme
-- LSL particularly benefited in December from strong mortgage
completions, strong Lender instructions for Surveys as well as the
completion of a contractual negotiation with a key lender in
relation to valuation services during H2
-- In the Financial Services Division, total financial advisers
at 31 December was 2,585, an increase of 8% year on year, with a
strong pipeline of new advisers
-- LSL's PRIMIS mortgage completions in December were 23% higher than the same period in 2019
-- Surveying revenue in December was 25% higher than December 2019
-- In the Estate Agency Division, residential sales exchange
income in December was in line with internal expectations, with the
residential sales exchange pipeline at 31 December more than 65%
above the same date in 2019. There is currently no evidence of a
material increase in residential fall-through trends. We continue
to monitor this closely
-- Reported Net Bank Debt at 31 December 2020 is expected to be
about GBP2m (2019: GBP41.9m). Adjusting for Covid-19 related
payment deferrals, mainly in relation to tax payments due as agreed
with HMRC, the underlying Net Banking Debt position at 31 December
2020 is about GBP17m
Financial performance
Gr oup r evenues f o r t he 12 months ended 31 December 2020 are
expected to decrease by around 15% to GBP266.0m (2020: GBP311.1m),
being materially impacted by Covid-19, as well as the reshaping of
the Your Move and Reeds Rains networks in February 2019, and the
tenant fee ban introduced in June 2019. Following the easing of the
first lockdown in May 2020, there has been a strong recovery in
revenue throughout H2, with a particularly strong performance in
December, with Group revenue up 12% compared to December 2019.
COVID-19 update
The welfare and safety of our colleagues and customers continues
to be afforded the highest priority, and the Group continues to
apply the advice of the Government and public health authorities
throughout our businesses and we will monitor closely any changes
to the guidance as the course of Covid-19 evolves.
Following the announcement of the National Lockdown on 4 January
2021, the Government reiterated its intention to enable the housing
market to operate as normally as possible, and the Group's
financial services, surveying and estate agency operations remain
open and operating in line with guidance.
Current trading & notice of results
We will provide details of current year trading with the release
of our Preliminary results for the year ended 31 December 2020. We
expect to report 2020 full year results on 9 March 2021.
This announcement has been determined to contain inside
information.
Notes to trading update:
1. Group Underlying Operating Profit is before exceptional
costs, Covid-19 related net costs, contingent consideration,
amortisation of intangible assets, share-based payments and
includes circa GBP16m of amounts receivable pursuant to the
Coronavirus Job Retention Scheme and utilised to pay employee
salaries for those placed on furlough.
Covid-19 related net costs include property and other asset
costs incurred while the lockdown was in place during 2020, and
other costs including redundancy, and are net of property grants.
This treatment was highlighted at the LSL Interim results. The
total amount of Covid-19 related net costs in 2020 was circa
GBP6.5m.
For further information, please contact:
David Stewart, Group Chief
Executive Officer
Adam Castleton, Group Chief
Financial Officer
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LSL Property Services plc investorrelations@lslps.co.uk
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Helen Tarbet
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Sophie Wills
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Buchanan 0207 466 5000 / LSL@buchanan.uk.com
------------------------------------
Notes on LSL
LSL is a leading provider of residential property services in
three key markets: financial services, surveying and valuation
services, and estate agency. Services to consumers and businesses
include: mortgage and non-investment insurance brokerage and
intermediary network services, residential sales, lettings, land
and new homes, surveying, and conveyancing support. 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
Forward Looking Statement
This announcement contains certain statements that are
forward-looking statements. They appear in a number of places
throughout this update and include statements regarding LSL's
intentions, beliefs or current expectations and those of its
officers, directors and employees concerning, amongst other things,
LSL's results of operations, financial condition, liquidity,
prospects, growth, strategies and the business it operates. By
their nature, these statements involve uncertainty since future
events and circumstances can cause results and developments to
differ materially from those anticipated. The forward-looking
statements reflect knowledge and information available at the date
of preparation of this update and, unless otherwise required by
applicable law, LSL undertakes no obligation to update or revise
these forward-looking statements. Nothing in this update should be
construed as a profit forecast. LSL and its Directors accept no
liability to third parties in respect of this update save as would
arise under English law.
Any forward-looking statements in this update speak only at the
date of this announcement and LSL undertakes no obligation to
update publicly or review any forward-looking statement to reflect
new information or events, circumstances or developments after the
date of this update.
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