22 July 2016
LSL Property Services plc ("LSL")
Pre Interim Results Trading Update
LSL, a leading provider of residential property services incorporating both Estate Agency and Surveying businesses, updates on trading ahead of the announcement of its interim results on 2nd August 2016.
Trading update
LSL expects to report strong interim results on 2nd August in-line with the Board's expectations and ahead of the same period last year, delivering growth across all major revenue lines and demonstrating profit growth in both the Estate Agency and Surveying Divisions.
The Group performed strongly in quarter one as the well flagged changes to Stamp Duty, which took effect on 1st April 2016 resulted in an acceleration of market activity. Quarter two, as expected, saw a slowing of LSL's trading performance in the run up to the EU referendum.
The EU referendum outcome has led to further consumer uncertainty and LSL's post-referendum trading performance has reflected these market conditions. Whilst it is difficult to accurately predict the market conditions and consumer sentiment for the remainder of calendar 2016, LSL does not expect market conditions to improve sufficiently to meet the Board's expectations for the full year. Consequently, whilst still expecting growth in profitability in the second half of 2016 as compared to the first half of 2016, LSL now expects that full year Group Operating profit(1) will be significantly lower than previously anticipated.
LSL will provide a further update with its interim results on 2 August 2016.
Commenting on today's announcement, Simon Embley, Chairman, said:
"The Group expects to report a very positive first half performance in a changing market. I am particularly pleased with the profit growth in both Estate Agency and Surveying.
Whilst the vote to leave the EU has created uncertainty in the property market, and has impacted consumer confidence, mortgage cost and availability remain positive for the UK housing market. 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 these changing market conditions and I am confident that it will continue to deliver long term value to shareholders."
Notes to trading update
(1) 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 |
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Adam Castleton, Group Chief Financial Officer |
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LSL Property Services plc |
0207 382 0360 |
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Richard Darby, Sophie McNulty, Sophie Cowles |
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Buchanan |
0207 466 5000 |
This announcement has been determined to contain inside information.
Forward Looking Statements:
This trading update may contain forward looking statements with respect to certain plans and current 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 including, amongst other things, UK domestic and global economic and business conditions, market related risks such as fluctuations in interest rates, inflation, deflation, the impact of competition, changes in customer preferences, delays in implementing proposals, the timing, impact and other uncertainties of future acquisitions or other combinations within relevant industries, the policies and actions of regulatory authorities, the impact of tax or other legislation and other regulations in the UK. As a result LSL's actual future condition, business performance and results may differ materially from the plans, goals and expectations expressed or implied in these forward looking statements. Nothing in this Report should be construed as a profit forecast.
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
