Trading Update

RNS Number : 1349V

LSL Property Services

23 May 2008

 



For Immediate Release

23 May 2008

LSL Property Services plc

Trading Update

LSL Property Services plc, a leading provider of financial and surveying services and residential estate agency, issues the following update on current trading.

In our AGM update on trading for the first quarter of the current financial year, we reported that whilst we expected market conditions to remain very challenging for the remainder of the year we were more confident about the resilience of our surveying division results, which contribute an ever growing proportion of Group profits. 

The Surveying division continues to perform strongly and above our expectations, supported by a robust re-mortgage market, last year's contract wins and strong relationships with lenders. As a consequence we remain confident of making further progress in surveying this year.

However, as has been widely reported, conditions in the housing market during the second quarter have deteriorated further and the current levels of housing transaction volumes are at an unprecedented low level. Trading in our Estate Agency division has been affected in line with the market and, as a result, we are now planning for a significantly weaker performance for the division in the current year.

We continue to take further action to reduce the cost base to reflect these lower activity levels, which to date will result in one off costs estimated at £3m with a payback in profitability terms in early 2009. We also continue to focus on the non transactional income streams including financial services, lettings and repossessions.

Recent measures taken by the Government and the Bank of England both to help first time buyers and to ease the liquidity crisis are welcome. It is too early to predict whether or not these initiatives alone will have a marked effect but other limited measures remain available to further stimulate the UK housing market. The Group has not factored in any upturn in the market for the remainder of 2008.

For further information please contact:

Simon Embley, Group Chief Executive Officer
Dean Fielding, Group Finance Director
LSL Property Services plc	01904 715 324
Richard Darby or Nicola Cronk
Buchanan Communications	020 7466 5000

 

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