LSL Property ServPLC LSL Interim Management Statement

  LSL Property ServPLC (LSL) - Interim Management Statement

RNS Number : 1547R
LSL Property Services
15 November 2012




For Immediate Release 15 November 2012

                                      

                                    

                                      

                          LSL Property Services plc

                            ("LSL" or "the Group")

                                      

                         Interim Management Statement

LSL, a leading provider of residential property services, incorporating Estate
Agency and Related Services and  Surveying and Valuation Services  businesses, 
issues this Interim Management Statement for the period from 1 July 2012 to 14
November 2012.

Housing market transaction levels have  deteriorated in the period with  Total 
Mortgage Approvals^(1) for  the third  quarter of  2012 14.5%  lower than  the 
third quarter of 2011 and House Purchase Approvals^(1) 6.7% lower on the  same 
comparative basis. Total Mortgage Approvals for  the 9 months from January  to 
September 2012 were down 6.5% year on year while House Purchase Approvals were
2.1% higher for the same period. Market data is not yet available for October,
although the  anticipated  improvement in  mortgage  lending volumes  for  the 
fourth quarter has not yet materialised.



Against this  backdrop  trading  has  been  satisfactory  during  the  period. 
Turnover for the 10 months ended 31 October 2012 compared with the same period
in 2011 is set out below both in total and on a like-for-like basis (excluding
Marsh & Parsons):



                           Total               LFL
              10 mths to 31 Oct 10 mths to 31 Oct
Group                       +14%               +1%
Estate Agency               +31%              +11%
Surveying                   -16%              -16%



Activity levels were subdued  over the Summer  and these conditions  persisted 
longer than expected  into September.  October transaction run  rates were  in 
line with  expected levels  and this  momentum has  been maintained  up to  14 
November.



Estate Agency & Related Services:

Estate Agency has performed well with continued strong growth in lettings  and 
financial services. Excluding Marsh & Parsons, lettings income for January  to 
October increased  by 25%  and  financial services  income increased  by  13%. 
Residential sales income grew by 7%  including the benefit of significant  fee 
improvement.



Despite a more challenging London housing market where stock levels have  been 
impacted by stamp  duty increases  and ongoing concerns  over possible  future 
property taxes, Marsh  & Parsons has  continued to make  good progress and  to 
benefit from its strong lettings income stream.



Asset management  has outperformed  the market  with a  year on  year  revenue 
increase of 4% for  January to October compared  to a decline in  repossession 
volumes of 8% for the period January to September.



Surveying & Valuation Services:

Surveying performance has  been satisfactory relative  to the market.  Revenue 
has been reduced by the impact  of key contractual changes during 2012,  which 
had been expected, and  by the reduction in  market share of certain  lenders. 
There has been continued  growth in the provision  of private survey  services 
where the annual income run rate is now £5.0m.



Professional Indemnity  costs have  been  in line  with expectations  for  the 
period since 1 July. The run rates of new notifications, new claims and  costs 
per claim have been consistent with the assumptions made when the  exceptional 
charge was made at the half year.







Outlook:

Market volumes  have  recently been  declining  at  a worsening  rate  as  the 
constraints on available mortgage finance have not improved and this has  been 
compounded by  continued  general  economic  uncertainty.  Despite  this,  the 
business  is  currently  trading  robustly  and  in  line  with   management's 
expectations. However the Board retains its  very cautious view of the  market 
for 2013.



Against this difficult market  backdrop, the Group will  continue to build  on 
this year's strong growth  in lettings and financial  services and to  further 
develop the provision of surveying services  to private buyers. LSL will  also 
accelerate investment in initiatives to drive growth in corporate lettings and
asset management, to increase  market share in estate  agency and to  increase 
the pace of new branch openings in Marsh & Parsons.



The Group  is extremely  cash  generative and  has  relatively low  levels  of 
gearing. LSL is  well placed to  combine its organic  growth initiatives  with 
further selective acquisitions  to increase  shareholder value  in the  medium 
term.





(1) Source: Bank of England



For further information, please contact:

Simon Embley, Group Chief Executive Officer

Steve Cooke, Group Finance Director

LSL                             Property                              Services 
plc
0203 215 1015



Richard Darby, Sophie McNulty and Helen Greenwood

Buchanan

 0207 466 5000



Notes to Editors:

LSL Property  Services  plc is  a  leading provider  of  residential  property 
services to  its  two key  customer  groups. Services  to  consumers  include: 
residential  sales,   lettings,  surveying   and  advice   on  mortgages   and 
non-investment insurance  products.  Services  to  mortgage  lenders  include: 
valuations and  panel  management  services,  asset  management  and  property 
management services.  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 Exchange

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