Lettings and surveys firm LSL Property Services delivers strong second half performance
Thu 28 Jan 2016
Lettings firm LSL Property Services said it has delivered a strong second half performance across the Group.
The Newcastle-headquartered business , which operates as an estate agency and surveying businesses, issued a trading update for the year ended December 31 2015 in which it said it anticipates full year underlying operating profit to be slightly ahead of the previous year.
The firm said it has a strong balance sheet, strong levels of cash generation and is well placed to increaseshareholder value through continuing to deliver on its strategy.
It said the Estate Agency division traded well in the second half following a slower first half, with income up 5%year on year, exchange income up 1% year on year and lettings income up 12% year on year, The financialservices section of the division was the strongest performer, pulling in 16% more income.
The stock market note said the firm is continuing its focus on lettings book acquisition. In all, LSL acquired 30lettings books in 2015 for a total consideration of 9.6m, a significant increase on the year before when it boughtout 10 lettings books for 1.8m.
Its estate agency Marsh and Parsons saw sales rise 9% year on year and opened two new London branches inShoreditch and Queens Park.
It also acquired Thomas Morris, a multi award-winning, seven-branch estate agency which trades inCambridgeshire, Bedfordshire and Hertfordshire.
The update said the Surveying Division traded well in the second half and saw revenue growth of 3%.
Technology updates are also currently in progress within the division.
As of December 2015 the Group had net banking debt of 39.9m, an increase of 5.2m on the previous year butthe Board said it is comfortable with the level of gearing.