Trading Update

RNS Number : 0056F

LSL Property Services

05 January 2010

 



For immediate release

5 January 2010

LSL Property Services PLC 

("LSL")

Trading Update

LSL, a leading provider of residential property and surveying services, is today providing a trading update for the year ended 31 December 2009 in advance of its preliminary results due on 3 March 2010. 

Overall, the 2009 results will be significantly ahead of expectations, driven principally by the stronger than anticipated level of housing transactions in the second half of 2009. This is reflected in the following estimated turnover figures against the comparable prior period:

• Group turnover for H2 is up by 21% (Full year is down by 4%) 

• Estate agency turnover for H2 is up by 42% (Full year is up by 5%) 

• Surveying turnover for H2 is down by 0.5% (Full year is down by 13%) 

The estate agency turnover reflects stronger than expected activity in the housing market, with mortgage approvals for house purchase estimated to be 360,000 for the second half of 2009 (H109: 240,000)*. Exchanges remained strong in December to beat the stamp duty deadline. In addition, the increase in turnover has been supported by the continued growth in lettings income and the significant growth in repossession asset management income.

The surveying division has made good progress in 2009 although activity has been impacted by a contraction in the re-mortgage market and in our Barnwoods operation. Various contracts have been extended including the recently announced five year contract extension with Santander, which will enhance earnings in 2010. 

Cash generation in 2009 has been strong and ahead of expectations, with net debt reduced significantly.

OUTLOOK

Activity levels have improved from the unprecedented conditions of 2008, but still remain challenging against historic norms. Given the macro outlook, the continued shortage of available mortgage finance, and the impact of fiscal tightening on consumer spending, market conditions will remain extremely unpredictable.

Nonetheless, both divisions have further enhanced their market positions and are well placed for longer term growth. The acquisition of Halifax Estate Agency Limited will complete on 15 January and presents further longer term scale opportunities for the Group. Given the strong balance sheet, the Group is well placed to consider further value enhancing acquisition opportunities which may arise in the future.

For further information, please contact:

LSL Property Services plc	01904 715324
Simon Embley CEO Dean Fielding Group Finance Director
Buchanan Communications	020 7466 5000
Richard Darby, Nicola Cronk, Catherine Breen

* Source: Bank of England

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 customers who are principally mortgage lenders, as well as buyers and sellers of residential properties. LSL's main operations are its surveying business, which operates under the e.surv and Chancellors Associates brands, its estate agency business, which operates under the Your Move and Reeds Rains brands, and its financial services business.

For further information, please visit LSL's website: www.lslps.co.uk

 

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