17th Oct 2007 07:00
LSL Property Services17 October 2007 For Immediate Release 17 October 2007 LSL Property Services plc Trading Update In our Interim statement released on 9 August 2007, we reported that recentsuccessive interest rate rises were starting to affect housing affordability andconsumer confidence generally and that lower housing transaction volumes in thesecond half of 2007 were anticipated. Since that date, the unexpected events inthe banking market regarding credit availability have further reduced buyerdemand and, as a result, transaction volumes during September and October todate have been significantly lower than we had expected. Consequently, we have lowered our assumptions for transaction volumes in ourestate agency business for the remainder of this year and the first half of nextyear. Our focus is on improving operational efficiencies and on driving up feesand other revenue opportunities. Nonetheless, we expect the trading out-turn forthe last quarter and our closing pipeline to be below our original expectations. Our surveying division has not been entirely immune from the recent difficultiesin the banking market as a number of our key clients are operating atsignificantly reduced activity levels. Against this backdrop, the surveyingdivision continues to perform satisfactorily, benefiting from our recentcontract gains. The integration of the Cheltenham & Gloucester and Barclays Bank valuationinfrastructure has gone well. However, faced with the current challenges in thebanking market and in order to maintain our operating flexibility into 2008,further reorganisation and integration costs of up to £1m will be incurred inthis financial year. Despite the deterioration in the market, we remain confident of delivering astronger performance in 2007 than 2006, although the outcome for the financialyear will fall short of our previous expectations. Market conditions are likelyto remain challenging for our agency business well into the first half of 2008,but we expect to deliver further strong progress in our surveying division,which now represents a greater proportion of our business. Underlying macroeconomic and demographic factors continue to support a strong housing market inthe longer term. 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 and Chancellors Associates brands, its estate agency business,which operates under the YOUR MOVE and Reeds Rains brands, and its financialservices business. 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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