Insider Media Limited: LSL confident of future growth
Thu 28 Feb 2013
LSL confident of future growth
Newcastle-headquartered LSL Property Services has said it is confident a combination of organic and acquisitive growth can drive shareholder value "even without a recovery in market conditions".
In the year to 31 December revenue rose by 12 per cent to 243.8m and underlying operating profit increased from 31.1m to 35.1m. Pre-tax profit before amortisation and exceptional costs increased by 13 per cent to 35.1m.
The listed property services giant said its estate agency division had an "excellent year" and strong like-for-like growth combined with a first full year contribution from Marsh & Parsons offset a difficult year in the surveying division.
The results allowed the company to increase the total dividend for the year to 9.5p per share. "LSL has made strong progress in 2012 despite continued challenging market conditions," said chairman Roger Matthews.
"The group reported double digit revenue growth in 2012 and is in a stronger position than a year ago with the estate agency division demonstrating significant organic growth potential.
"We remain committed to our strategy of driving organic growth in all parts of the business and plan to invest further in lettings and to focus on growing market share in the estate agency division to maintain our excellent progress. We will also continue to invest in our financial fervices division and expand the provision of surveying services to private buyers."
"The group continues to be extremely cash generative and maintains a strong balance sheet, having reduced the level of net debt by 25 per cent to 26.6m. We remain confident that pursuing a strategy of investment in organic growth initiatives combined with acquisitions will deliver increased shareholder value into the medium term even without a recovery in market conditions."