LONDON (Alliance News) - LSL Property Services PLC Tuesday said it will pay a special dividend of 16.5 pence per share after it sold part of its shareholding in recently-listed Zoopla Property Group PLC and as pretax profit more than trebled in the first half.
As part of Zoopla's June initial public offering, LSL sold 8.9 million shares, representing 2.1% of Zoopla, which operates the UK's second largest property website after Rightmove PLC's Rightmove.co.uk.
Zoopla, in which LSL held a 4.9% stake, priced its initial public offering at 220 pence per share, valuing the business at GBP918.8 million. Zoopla was quoted Tuesday at 247.75 pence.
As a result of the sale, LSL said it generated an GBP18.0 million exceptional profit on disposal while still retaining a shareholding which has been revalued at GBP27.2 million.
LSL said it will pay a special dividend of 16.5 pence per share, which returns to shareholders the net after-tax proceeds of GBP16.8 million from the sale of the Zoopla shares, including an additional sale of shares in July.
LSL also increased its normal interim dividend 21% to 4.0 pence from 3.3 pence, following a strong first half performance.
The residential property services company, which incorporates both an estate agency and surveying business, posted pretax profit of GBP31.4 million, up from GBP8.4 million a year earlier as revenue rose 18% to GBP139.8 million from GBP118.8 million.
LSL said the estate agency division once again delivered a strong performance, with revenue up 20% to GBP108.6 million from GBP90.3 million a year earlier.
The company said the division has capitalised on the growing market and delivered an "excellent performance" driven by very good growth across all estate agency branch income streams. Residential sales and financial services income both increased by 27%.
LSL said its surveying division, which experienced a difficult 2013, showed some improvement with revenue up 10% to GBP31.3 million from GBP28.5 million a year earlier.
"We continued to build new capacity during the period with further investment in our graduate recruitment programme while maintaining a strong focus on delivery of excellent service to lender clients," the company said of its surveying unit.
At an operating level, the company said a highlight was signing a multi-year valuation services contract with Barclays Bank PLC.
Looking ahead, the company said "outlook from lenders remains positive and as a result we expect the market to continue to grow, but at more modest levels, in the second half of the year."
Additionally, the company said it it very cash generative at an operational level and has a strong balance sheet.
LSL shares were quoted up 1.5% at 370.00 pence Tuesday morning.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
Copyright 2014 Alliance News Limited. All Rights Reserved.
Barclays (BARC)
Rightmove (RMV)
Lsl Prop (LSL)
