Enormous surge in profits for LSL

News Category: Industry News

LSL Property Services made an astonishing £19.7m in profits during the first six months of this year.

The figure compares with £4.3m profit for the same period last year.

LSL's group revenue also rose, from £74.1m for the first half of last year, to £101.1m for the same period this year.

The group includes estate agency businesses Your Move, Reeds Rains and the former, heavily debt-laden Halifax Estate Agencies, which it bought for £1 in January.

Roger Matthews, chairman, said: “We are delighted with our progress which underpins the board’s confidence in the expected full-year outturn.

“Underlying group operating profit on a like-for-like basis has increased by 56% to £17m in a challenging market where mortgage approvals for house purchase are at half historic norms.
 
 “The outlook for the market continues to be uncertain and we remain cautious in view of broader economic challenges. However, against this backdrop we have continued to strengthen our counter-cyclical income businesses, in particular asset management, and as a result the group is becoming increasingly robust through the cycle.

“We are well placed to grow the business both organically and through selective acquisitions and deliver significant increases in shareholder value when the market recovers.”

Estate agency turnover on a like-for-like basis increased by 26% to £47.9m compared with £38.1m in the same period of 2009 and generated underlying operating profit of £2.9m compared with a previous loss of £0.8m.

LSL also became the UK's fourth largest mortgage network this year. It added to its existing financial services  Home of Choice, now rebranded to First Complete, which it acquired for £0.4m from the administrators this spring.

LSL said it strengthened its proposition to the mortgage lender market and cemented its relationships with key clients.


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