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LSL Property Services   -  LSL   

Full Year Trading Update

Released 07:00 22-Jan-2019

RNS Number : 6878N
LSL Property Services
22 January 2019
 

For immediate release

22nd 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 31st 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 31st 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 31st 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 31st December 2018 the Group had net banking debt of £32.1m (31st December 2017: £30.0m). 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 5th 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


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.
 
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Full Year Trading Update - RNS