3rd Jan 2008 07:00
LSL Property Services03 January 2008 For Immediate Release 3 January 2008 LSL Property Services PLC ("LSL") Pre Close Trading Update LSL, a leading provider of residential property and surveying services, is todayproviding a pre close update for the year ended 31st December 2007 in advance ofits preliminary results due on 27th February 2008. For the period, LSL estimates that:- •Group turnover is up by 11% •Surveying turnover is up by 21% (6% excluding Barnwoods) •Estate agency and financial services turnover is up by 5% The surveying division has made strong progress in the year, benefiting from thesignificant contract gains with Barclays and C&G which started in H207. Both ofthese contracts are performing well and Barclays surveying business has beensuccessfully integrated into e.surv. These contracts have compensated for thesignificantly reduced activity levels arising from the recent liquidity issuesin the banking market. In addition, there has been a surveying andadministration headcount reduction of 115 full time equivalents. The estate agency division has seen volumes in H207 year on year contract byaround a third. Accordingly, action has been taken to reduce operating costsincluding the closure of 12 under performing branches and a headcount reductionof around 200 full time equivalents since September. Our focus is also onincreasing the fee percentage on listings, managing effectively the introductionof Home Information Packs and growing other counter cyclical revenue streamssuch as lettings. The operating profit * for the year ended 31st December 2007 will be in linewith our expectations, revised at the time of the trading update in October. Aspart of a number of cost saving initiatives LSL has incurred one off costs ofcirca £1m as previously indicated. We are also reviewing strategic options forour conveyancing division, which continues to under perform and as a result willincur an impairment charge in the year of £1.5m. Market conditions are difficult to predict but are expected to remainchallenging well into 2008. As a result of cost and income initiatives LSL isconfident of its ability to maximise its profits through the cycle and expectsthe surveying division, which now represents a bigger proportion of profit, tomake further progress in 2008. * pre one off costs and amortisation For further information please contact: Simon Embley, Chief ExecutiveDean Fielding, Group Finance DirectorLSL Property Services 01904 715 324Richard Darby, Nicola CronkBuchanan Communications 020 7466 5000 Notes to editors: LSL Property Services plc is one of the leading residential property servicescompanies in the UK and provides a broad range of services to its clients whoare principally mortgage lenders, as well as buyers and sellers of residentialproperties. LSL's main operations are its surveying business, which operatesunder the e.surv, Barnwoods and Chancellors Associates brands, its estate agencybusiness, which includes YOUR MOVE and Reeds Rains, and its financial servicesbusiness. For further information, please visit our website: www.lslps.co.uk This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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