Interim Management Statement

RNS Number : 8686G

LSL Property Services

19 May 2011

 



For immediate release

19 May 2011

LSL Property Services plc

("LSL" or "the Group")

Interim Management Statement

LSL, a leading provider of residential property services, incorporating estate agency and surveying businesses, issues this Interim Management Statement for the period 1 January 2011 to 17 May 2011.

Since 1 January 2011 the housing market has weakened with House Purchase Mortgage Approvals for the first quarter down 2.7% compared to the first quarter of 2010⁽¹⁾. Market data is not yet available for April though the extended holiday period at the end of the month is likely to have had a significant negative impact.

Against this challenging backdrop the Group has traded in line with the Board's expectations during the first quarter. Turnover for the 3 months ended 31 March 2011 compared with the same period in 2010 and also for the 4 months ended 30 April 2011 was as follows:

	To 31 March	To 30 April
Group	+6%	+3%
Estate Agency	+11%	+7%
Surveying	-2%	-5%

Activity levels for April were disappointing as a result of the extended holiday period, however transaction run rates for the two weeks from 3 May to 17 May have returned to being in line with expectations.

Estate Agency :

Estate Agency has performed well and has achieved further market share gains during the period. In addition there has been good growth in lettings and financial services income streams particularly in the ex 'Halifax Estate Agencies' branches which were acquired in January 2010. The performance of asset management has been pleasing despite a significant fall in repossession volumes during the period. Investment in people, marketing and 'The Bridge' call centre has continued as planned to underpin the next phase of market share growth and there has been a very positive early impact on pipelines.

Surveying :

Surveying has traded robustly in the face of low levels of mortgage activity. Remortgage volumes during the first quarter were bolstered by expectations of an interest rate rise but activity levels have subsequently abated. There has been continued growth in relation to private survey services income in line with our expectations for this new key initiative and there has been strong positive customer feedback.

Outlook:

LSL retains a cautious view of the market for 2011 given continued shortage of available mortgage finance and general economic uncertainty.

Despite this market uncertainty the Board remains confident in delivering further progress in 2011, particularly in light of the very encouraging results to date from the market share growth plans both in Estate Agency and from private survey services within Surveying. The anticipated time lag between the cost of investment in Estate Agency and revenue realisation will result in profits being more weighted towards the second half of the year.

Even without recovery of market transaction volumes the Group is well placed to increase shareholder value through its major organic growth initiatives and use of its strong balance sheet to make further value accretive acquisitions.

(1) Source : Bank of England

For further information, please contact:

Simon Embley, Group Chief Executive Officer

Steve Cooke, Group Finance Director

LSL Property Services plc                                                                               0203 215 1015

Richard Darby, James Strong

Buchanan Communications                                                                             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 two key customer groups. Services to consumers include: estate agency, lettings, surveying and advice on mortgages and non investment insurance products. Services to mortgage lenders include: valuations and panel management services, asset management and property management services.  For further information, please visit our website: www.lslps.co.uk.

 

 

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