Liquid error: wrong number of arguments (2 for 1) Prime Resi: LSL reports 62% fall in pre-tax profits | Marsh & Parsons Sales and Lettings Estate Agents London

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Prime Resi: LSL reports 62% fall in pre-tax profits

Thu 28 Feb 2013

LSL reports 62% fall in pre-tax profts

February 28, 2013 LSL Property Services, who bought Marsh & Parsons, Davis Tate and Lauristons in 2012, has
reported a 62% drop in pre-tax profits for the year ending 2012, down from 17.6m to 6.7m.
According to Mortgage Strategy, the firm's preliminary results for the year ending 31 December 2012 (published
today) show LSL incurred "exceptional costs" of 17.7m in 2012, up from 2m in 2011, which included PI costs of
17.3m.
A non-cash charge of 4.2m was made "in relation to contingent considerations resulting from the acquisitions of
estate agents Marsh & Parsons, Davis Tate and Lauristons."
The acquisition of Marsh & Parsons in November 2011 apparently resulted in an exceptional expense of 1.8m in
2012; the acquisitions of Davis Tate and Lauristons (also in 2012) resulted in an exceptional expense of 2.3m.
Cash generated from operations looks to have increased by 28% to 26.9m, up from 21.3m in 2011, after
capital expenditure of 5.7m.
LSL Property Services chairman Roger Matthews: "LSL has made strong progress in 2012 despite continued
challenging market conditions. 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 Services 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."
In total the Group arranged mortgage lending of 7.1bn during 2012 - up from 6.8bn in 2011 (the total
intermediary lending market is estimated by Mortgage Strategy to be at 72bn).
Here's the Executive Summary from LSL
Very good progress during 2012 despite no improvement in market transaction levels:
- Underlying Group Operating profit up 13% to 35.1m- Net debt reduced by 25% to 26.6m Full
year dividend increased by 9% to 9.5p per share
Estate Agency delivered excellent profit growth of 138% to 24.4m:
Surveying impacted by market decline and major contract renewals:
- Good growth in provision of surveying services to private buyers- Professional indemnity costs tracking as
expected
Strong Position entering into 2013:
- Quality of Group's earnings transformed since market decline in 2007

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