25th Nov 2022 11:56
(Alliance News) - LSL Property Services PLC on Friday reported a quarterly rise in revenue but expects full-year profit to be in a range just above or just below that reported in 2019.
Shares were down 10% at 235.00 pence each on Friday in London.
The Newcastle-based estate agency said revenue for the ten months ended on October 31 was GBP276.1 million, slightly up from GBP275.4 million a year earlier.
It noted the Financial Services Network revenue increased 9% in smaller mortgage and protection markets.
At a divisional level, Financial Services was up 3%, Surveying & Valuation up 9%, and Estate Agency down 6%.
Looking ahead, LSL said the financial impact of the recent turbulent market conditions will largely be reflected in the first quarter of 2023. But it expects profit in the second year to be broadly in line with the first half with the possibility of a stronger outturn.
It added that the overall group performance is expected to be below prior expectations with full-year profit now anticipated to be in a range just "above or just below" that reported in 2019. Pretax profit was GBP16.0 million in 2019.
Chief Executive Officer David Steward says: "I am pleased to confirm that LSL's performance has remained resilient, and we are confident that underlying group operating profit in the second half of 2022 will at least be broadly in line with the second half of 2021, with the possibility of a stronger performance depending on the volume of valuation instructions received from lenders."
Net cash at October 31 amounts to GBP29.1 million. Expects positive cash flows in the remaining of the year.
In August, LSL had said revenue for the six months to June 30 declines 3.0% to GBP160.9 million from GBP166.5 million a year prior, as pretax profit drops 71% to GBP7.4 million from GBP25.5 million.
By Xindi Wei; [email protected]
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