Interim Management Statement

RNS Number : 5209R

LSL Property Services

04 November 2011

 



For Immediate Release

4 November 2011

LSL Property Services plc

("LSL" or the "Group")

Interim Management Statement 

and

Board Appointment

LSL, a leading provider of residential property services, incorporating estate agency and surveying businesses, issues this Interim Management Statement for the period 1 July 2011 to 31 October 2011.

Since 1 July 2011, the housing market has improved slightly with House Purchase Mortgage Approvals for quarter three up 8% compared to the same period in 2010 ⁽¹⁾.  However, for the 9 months from January to September, House Purchase Mortgage Approvals are flat year on year. Market data is not yet available for October.

Against this backdrop, LSL's trading has been satisfactory for the 3 months ended 30 September but has been more challenging during October. Turnover for the 9 months ended 30 September 2011 compared with the same period in 2010 and also for the 10 months ended 31 October 2011 was as follows:

	To 30 September	To 31 October
Group	+3%	+2%
Estate Agency	+9%	+8%
Surveying	-7%	-7%

Cash generation remains strong and net debt at 31 October 2011 was £9.4m (as at 31 October 2010 £13.7m). LSL remains on track to be in a net cash position at the year end before the impact of the Marsh and Parsons acquisition.

Estate Agency

Estate Agency has continued to make good progress with benefits flowing from the investments made in branch management and 'The Bridge' call centre. Estate Agency pipelines at 31 October 2011 were 9% higher than on 31 October 2010. The Estate Agency branches are also building on the momentum generated earlier in the year with further strong increases in lettings and financial services income. In addition, a number of small lettings businesses have been acquired during 2011 as the business continues to diversify revenue streams.

The Asset Management business is performing well in an environment where repossession volumes are lower than in 2010.

Surveying Division

Surveying has traded well despite low levels of mortgage activity requiring physical survey valuations. As expected, performance against key lender client prior year comparatives has improved in quarter three with Surveying income 7% lower for the 10 months to 31 October compared to 9% lower for the 6 months to 30 June as reported in the interim results.

Surveying services for private buyers are continuing to build in line with our expectations.

Board

Following the Group's previous announcement of its intention to strengthen the Board, Helen Buck is joining LSL as Non Executive Director from 1 December 2011. Helen is currently Convenience Director and a member of the Operating Board of Sainsbury's Supermarkets Ltd, part of J Sainsbury plc. Helen has previously held senior Retail and Marketing positions at Sainsbury's Supermarkets Ltd, Marks and Spencer Group plc, Woolworths PLC and Safeway plc.

In accordance with the requirements of 9.6.15 of the Listing Rules, LSL confirms that no notification is required pursuant to the provisions of 9.6.13 in relation to Helen Buck.

Roger Matthews, LSL Chairman, commented: "I am delighted to welcome Helen to the LSL Board. I am confident that she will make a valuable contribution to the development and growth of the business."

Outlook

Market conditions are challenging and uncertain and LSL has an increasingly cautious view of 2012. The current housing market continues to be impacted by the continued shortage of available mortgage finance, the general economic uncertainty and the increasing pressure on household budgets and consumer confidence.

Against this difficult backdrop, LSL will continue to focus on growing market share and profitability in Estate Agency, developing surveying services for private buyers and capitalising on the growth opportunities arising from the Marsh and Parsons acquisition. The Group is well positioned to increase shareholder value through delivery of these initiatives. 

 (1) Source: Bank of England

For further information, please contact:

Simon Embley, Group CEO Steve Cooke, Group Finance Director LSL Property Services plc	0207 382 0365
Richard Darby Nicola Cronk Buchanan	0207 466 5000

Notes to Editors

LSL Property Services plc is one of the leading residential property services companies in the UK and provides a broad range of services to its clients who are principally mortgage lenders, as well as buyers and sellers of residential properties. For further information, please visit our website: www.lslps.co.uk.

 

END

 

 

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