6th Nov 2013 10:34
LONDON (Alliance News) - Residential property services provider LSL Property Services PLC Wednesday said group revenue for the four months ended October 31 was up 13% boosted by a strong performance from its two businesses.
The company, which incorporates an estate agency and surveying business, said activity levels have increased consistently since April and that, "trading momentum is now building on a month by month basis."
The estate agency business has performed well with revenue up 13% compared to the same period last year, while lettings and financial services income growth was up 6% and 25%, respectively.
A number of well known estate agencies fall under the LSL umbrella including Your Move, Marsh & Parsons and Lawlors.
Revenue for the surveying and valuation services business increased 12%, which LSL said reflected improved market conditions. It has also invested in recruitment for the division to build capacity for clients.
LSL said it expects an additional expectational charge of around GBP12 million to be made for the year ending December 31 in order to increase professional indemnity (PI) costs. The company has been hit with a number of claims relating to what it called a high-risk lending period between 2004 and 2008.
Looking ahead, the company said it was "confident" of delivering a trading performance in line with expectations as mortgage volumes and market transaction levels continue to grow.
Overall, LSL said it is extremely cash generative and has a strong balance sheet with "relatively" low levels of financial gearing.
"LSL is very well placed to benefit from its operational gearing in the improved market conditions and to combine this with further selective value-accretive acquisitions to increase shareholder value," it said.
The stock was trading at 452.50 pence Wednesday morning, down 2.50 pence or 0.6%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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