LSL Property Services PLC Full Year Trading Update (7670Z)

TIDMLSL

RNS Number : 7670Z

LSL Property Services PLC

27 January 2022

LSL Property Services plc ("LSL")

Full Year Trading Update

Record full year 2021 Group Underlying Operating Profit, in line with the LSL Board's expectations

LSL issues a pre-close trading update for the year ended 31 December 2021.(1)

Highlights

 
 --   On track with the execution of the Group's Financial Services 
       led growth strategy, with further investment in Financial 
       Services during H2 which is expected to deliver benefits 
       in future years 
 --   Financial adviser numbers at 31 December 2021 increased 
       by a record 273 year-on-year to 2,858 
 --   Surveying Underlying Operating Margin increased to c.25% 
       (2020(2) : 21.0%), benefiting from operational efficiency 
       and improved income per job 
 --   Estate Agency increased its residential market share across 
       its core catchment areas 
 --   Estate Agency residential pipeline conversion slowed in 
       H2 2021, following the record market levels experienced 
       in the lead up to the 30 June 2021 Stamp Duty deadline 
       and capacity issues in the conveyancing market 
 --   We retain a strong residential sales exchange pipeline 
       at 31 December 2021, 7% lower than the record pipelines 
       reported at the same date in 2020. Residential fall-throughs 
       remain at normal levels

Financial performance

 
 --   Group Revenue expected to increase by around c.23% to 
       GBP327m (2020: GBP266.7m) 
 --   Record Group Underlying Operating Profit(2) , significantly 
       ahead of prior year, and in line with the LSL Board's 
       expectations 
 --   Net Cash at 31 December 2021 of about GBP48.5m (31 December 
       2020: Net Bank Debt GBP1.6m)

Strong balance sheet

We announced the sale of investments in two non-core businesses to simplify the Group structure, LMS (May 2021) and TM Group (July 2021), for a combined total of GBP41.3m in cash. LSL estimates the lost profit contribution for these two businesses in 2021 to be c.GBP1m.

LSL's balance sheet and strong cash generation enables further investment to deliver the Group's ambitious growth strategy, including expected investment in Pivotal Growth, established in April 2021 as a joint venture with Pollen Street Capital, to "buy and build" a leading national mortgage broker.

Preliminary results

We will provide an update on current trading, outlook, and strategic progress with the release of our preliminary results for the year ended 31 December 2021, which we expect to report on Wednesday 16 March 2022.

Notes to trading update:

   1.        This trading update is based on preliminary unaudited financial information

2. Group Underlying Operating Profit is before exceptional costs, contingent consideration, amortisation of intangible assets and share-based payments. 2020 Surveying Underlying Operating Margin is stated on post-COVID 19 costs basis

For further information, please contact:

 
 David Stewart, Group CEO 
  Adam Castleton, Group CFO 
 LSL Property Services plc    investorrelations@lslps.co.uk 
 Helen Tarbet 
  Sophie Wills 
 Buchanan                     0207 466 5000 / LSL@buchanan.uk.com

Notes on LSL

LSL is one of the largest providers of services to mortgage intermediaries and mortgage and protection advice to estate agency customers, completing around GBP41bn of mortgages in 2021. It represents around 10% of the total purchase and remortgage market with around 2,900 financial advisers. PRIMIS was named Best Network by Money Marketing in their 2021 awards.

LSL is one of the UK's largest providers of surveying and valuation services, supplying seven out of the ten largest lenders in the UK, employing around 500 operational surveyors, and performing over 500,000 valuations and surveys per annum for key lender clients. It was named Mortgage Surveyor of the Year at the 2021 Mortgage Awards with Money Age.

LSL also operates a network of 225 owned and 128 franchised estate agency branches.

For further information please visit LSL's website: lslps.co.uk

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

TSTBKABBFBKDDDB

(END) Dow Jones Newswires

January 27, 2022 02:00 ET (07:00 GMT)

Lsl Property Services (LSE:LSL)
Historical Stock Chart
From May 2024 to Jun 2024