13th Nov 2014 09:29
LONDON (Alliance News) - LSL Property Services PLC shares dropped in early trade on Thursday after the company said it expects its underlying operating profit for the year to be below its expectations, owing to lower activity levels in the market.
The company said it does expected to post double-digit growth in underling operating profit for the year, but said it would be at a lower level than anticipated. The profit warning is in line with the caution expressed in its half-year results, when LSL said it expects growth to moderate in the second half.
It also said it is taking a cautious stance on 2015, given the recent fall in activity in the mortgage market and further uncertainty surrounding the upcoming UK General Election.
Shares in LSL were down 6.1% to 293.75 pence on Thursday morning, making it one of the worst performers in the FTSE All Share index.
The group said group revenue in the four months to the end of October rose 8% year-on-year, with estate agency revenue rising 10% and surveying revenue up 2% in the period. In the ten months to the end of October, group revenue was up 14%, with 16% growth in its estate agency arm and 6% in surveying.
In the estate agency business, exchange income rose 10% in the four-month period, with lettings income growing 12%, financial services income up 19%, and pipeline volumes in line year-on-year.
The surveying business has been boosted by a new contract with Lloyds Banking Group PLC, but market volumes held back revenue growth.
By Sam Unsted; [email protected]; @SamUAtAlliance
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