Trading Update

Released : Nov 29, 2017 07:00

RNS Number : 7795X
LSL Property Services
29 November 2017
 

                                                                                                                                                                                 29th November 2017

LSL Property Services plc ("LSL")

Trading Update

LSL, a leading provider of residential property services incorporating both estate agency and surveying businesses, issues a trading update for the period up to 31st October 2017.

Group Performance and Outlook

Group revenues for the ten months ended 31st October 2017 increased by 1.1% to £260.9m (2016: £258.0m) with Estate Agency up by 1.6% and Surveying down by 0.7%.

Group revenues for the four months ended 31st October 2017 of £109.4m (2016: £106.6m) were 2.6% higher year on year.  Whilst Residential Sales exchange income was down by 2% in the same period reflecting lower exchange volumes, strong performances were delivered in Lettings revenue (+4%) and Financial Services revenue (+17%) demonstrating the strength of the Group through its broad range of businesses across the residential property services sector. 

The percentage change in revenue for the three months ended 30th September 2017, the four months ended 31st October 2017 and also for the ten months ended 31st October 2017 is set out below:

 

3 months

4 months

10 months

 

to 30 Sept

to 31 Oct

to 31 Oct

Group

3%

3%

1%

Estate Agency

4%

4%

2%

-Residential sales

-1%

-2%

-9%

-Lettings income

3%

4%

4%

-Financial Services income

16%

17%

16%

Surveying

-4%

-5%

-1%

 

The Board anticipates the full year 2017 Group Underlying Operating Profit(1) will be marginally ahead of its prior expectations.

Market activity levels have remained subdued throughout 2017. With continued uncertainty over UK economic conditions and the UK and global political environment, we continue to remain cautious on the market outlook for 2018.

UK Government Autumn Budget

LSL notes the changes to Stamp Duty for first time buyers and the increased support for the construction of new homes in the UK Government Autumn Budget on 22nd November 2017 and LSL will monitor the impact on the UK housing market going forwards.

Balance Sheet Update

Net Bank Debt at 31 October 2017 was £42.3m (2016: £43.5m).

As reported in the Interims in August 2017, the Group completed the sale of its investment in the Guild of Professional Estate Agents (GPEA) on 12th July 2017 with consideration made up of cash (£3m) and ordinary shares in eProp Services plc. We expect to disclose a gain on disposal for this item of £5.6m as an exceptional item in the 2017 Financial Statements.

 

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

 

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, Richard Darby, Sophie Cowles

 

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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