LSL Property Services Trading Update-2016 Expectations Unchanged (3577Q)
29 November 2016 - 6:00PM
UK Regulatory
TIDMLSL
RNS Number : 3577Q
LSL Property Services
29 November 2016
FOR IMMEDIATE RELEASE 29 November 2016
LSL Property Services plc ("LSL")
Trading Update-2016 Expectations Unchanged
LSL, a leading provider of residential property services
incorporating both Estate Agency and Surveying businesses, issues a
trading update for the period up to 31 October 2016.
Group Performance and Outlook
Group revenues for the ten months ended 31 October 2016
increased by 3.0% to GBP258.0m (2015: GBP250.6m) reflecting overall
growth in both Divisions: Estate Agency up 3.5% and Surveying up
0.9%.
Whilst Group revenues for the four months ended 31 October 2016
of GBP106.6m (2015: GBP110.4m) were 3.4% lower year on year
reflecting the effect of lower activity levels in the residential
sales market, strong performances during the same four month period
were delivered in Lettings revenue (+7%) and Financial Services
revenue (+24%) reflecting the strength of the Group through its
broad range of businesses across the residential property services
sector.
We expect Group Underlying Operating Profit(1) for calendar 2016
to be in line with our expectations.
With the reduction in market activity levels in the second half
of 2016 and uncertainty over UK economic conditions, we are
cautious on the market outlook for 2017. However, mortgage costs
and availability remain positive and the medium to longer-term
fundamentals of the UK housing market remain positive.
LSL has very strong fundamentals, with a robust balance sheet
and a balanced business portfolio including its counter-cyclical
Asset Management business. The business is well positioned to adapt
quickly to changing market conditions to deliver long-term value to
shareholders.
Balance Sheet Update
Between 20 July 2016 and 31 October 2016, LSL sold its entire
holding of 11.3m ordinary shares in Zoopla Property Group PLC for
total proceeds of GBP36.1m at an average price per share of
GBP3.19.
The proceeds of the disposal are being used to reduce corporate
indebtedness.
Net Bank Debt at 31 October was GBP43.5m (2015: GBP55.5m) with a
gearing level of 0.98 times 12 month adjusted EBITDA (2015: 1.21
x).
Autumn Statement
LSL notes that the Chancellor has as part of the 2016 Autumn
Statement announced that the Government intends to commence a
consultation in relation to tenant fees. The Government has not
announced any details on the scope or timetable of this
consultation or any timetable regarding the implementation of any
legislative changes. LSL will continue to monitor the Government
review of tenant fees and contribute to the consultation in due
course.
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
For further information, please contact:
Ian Crabb, Group Chief Executive
Officer
Adam Castleton, Group Chief
Financial Officer
LSL Property Services plc 0207 382 0360
Richard Darby, Sophie McNulty,
Sophie Cowles
Buchanan 0207 466 5000
Forward Looking Statements:
This trading update may contain forward looking statements with
respect to certain plans, goals and expectations relating to the
future financial condition, business performance and results of
LSL. By their nature, all forward looking statements involve risk
and uncertainty because they relate to future events and
circumstances that are beyond the control of LSL, and they may
cause the actual results or performance of LSL to be materially
different from the results or performance implied by such
statements. Any forward looking statement will be by reference to
the date of this trading update and must not be regarded as
guarantees of future performance. Further, nothing in this trading
update should be construed as a profit forecast. Some of the
factors which may affect LSL's actual future conditions, business
performance and results are contained within LSL's Annual Report
& Accounts 2015, together with information on the management of
the principal risks and uncertainties faced by LSL.
Notes on LSL:
LSL is a leading provider of residential property services to
its key customer groups. Services to consumers include: residential
sales, lettings, surveying, conveyancing 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 LSL's website: www.lslps.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
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