27 Nov 2018 07:00
For Immediate Release 27th November 2018
LSL Property Services plc ("LSL")
Trading Update
LSL Property Services plc, 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 2018.
Group Performance and Outlook
The Board anticipates the full year 2018 Group Underlying Operating Profit(1) will be in line with its prior expectations.
Group revenues for the ten months ended 31st October 2018 increased by 3.7% to £270.5m (2017: £260.9m) with Estate Agency up by 3.4% and Surveying up by 4.7%. Group revenues for the four months ended 31st October 2018 of £117.6m (2017: £109.4m) were 7.5% higher year on year, demonstrating the strength of the Group through its broad range of businesses across the residential property services sector.
In the Estate Agency Division(2), whilst Residential Sales exchange income was down by 5% in the same four-month period reflecting lower exchange volumes, strong performances were delivered in Lettings income (+4%) and Financial Services income (+15%).
Over the same four-month period, Marsh & Parsons delivered a good revenue performance despite a challenging London market with total revenue up 3%. Lettings income continued to perform positively with growth of 4% offsetting the 5% fall in Residential Exchange revenue.
The Surveying Division delivered a strong performance in the same period with income 22% higher year on year, which included a material contribution from the successful commencement of the Lloyds Bank plc surveying and valuation services relationship.
The percentage change in revenue for the three months ended 30th September 2018, the four months ended 31st October 2018 and also for the ten months ended 31st October 2018 is set out below:
| 3 months to 30 Sept | 4 months to 31 Oct | 10 months to 31 Oct |
Group | 5% | 7% | 4% |
Estate Agency(2) | 3% | 4% | 3% |
-Residential sales | -6% | -5% | -9% |
-Lettings income | 4% | 4% | 4% |
-Financial Services income | 13% | 15% | 18% |
Marsh & Parsons | 5% | 3% | -1% |
Surveying | 15% | 22% | 5% |
Market activity levels have remained subdued in 2018. With continued uncertainty over the UK and global political environment and the impact on UK consumer confidence, we continue to remain cautious on the market outlook for 2019.
Balance Sheet Update
Net Bank Debt at 31st October 2018 was £47.4m (2017: £42.3m). The increase in Net Debt of £5.1m year on year includes the funding of the two Financial Services acquisitions (PTFS and RSC), one Financial Services investment (Mortgage Gym) and the recommencement of lettings book acquisitions.
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
(2) Estate Agency Division revenue metrics presented in this statement include Marsh & Parsons revenue
For further information, please contact:
Ian Crabb, Group Chief Executive Officer Adam Castleton, Group Chief Financial Officer |
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LSL Property Services plc | 0207 382 0360 |
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David Rydell, Sophie Wills, Gemma Mostyn-Owen |
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Buchanan | 0207 466 5000 |
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Lsl Prop (LSL)