LSL on the acquisition trail as profits increase
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LSL Property Services, the parent company of Pink Home Loans and First Complete has reported a profit before tax of £25.8m for 2010, up from £17.0m in 2009 and the group says it is well placed to make further acquisitions.
LSL has reported a net exceptional profit of £10.2m for 2010, arising from an exceptional profit of £16.0m on the acquisition of the Halifax Estate Agencies Business and other exceptional costs of £5.8m.
Profit before tax before exceptional items increased by 52% to £25.8m.
The group’s revenue increased by 31% to £206.6m, driving a 13% increase in underlying group operating profit to £31.9m.
On a like for like basis, excluding the Halifax Estate Agencies business acquired in January 2010, underlying group operating profit increased by 24% to £35.1m.
However, the result included an operating loss of £3.2m for the Halifax business without which like-for-like group revenue increased by 16% to £182.4m, up from £157.7m in 2009.
In May 2010 LSL acquired the business and assets of Home of Choice, now rebranded to First Complete, for a total consideration of £0.4m.
It also acquired Pink Home Loans in November 2010 for a cash consideration of £1.6m.
LSL says profitability of the new business will be constrained until such time as the mortgage market improves but these acquisitions significantly strengthen LSL’s relationship with its key lender clients.
Home of Choice and Pink Home Loans have not contributed materially to the 2010 operating profit and yet like-for-like financial services income increased by 6% to £13.3m, up from £12.5m in 2009.
The group says a key objective for 2011 is to complete the integration of the new financial services businesses and roll out a new simplified operating model across the group.
Roger Matthews, chairman of LSL, says the group is well placed for further acquisitions.
He says: “The group made excellent progress in a market where transaction levels are circa 50% of historic normal levels.
“LSL still has a cautious view of the market for 2011 in view of the ongoing shortage of available mortgage finance and broader well documented economic challenges. However, we are confident that the group can build on the market share gains made in 2010 and grow the business even in these market conditions.
“With a very strong balance sheet, we are well placed to grow both organically and through further acquisitions in the current market and deliver further substantial growth when transactions volumes recover.”
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Readers' comments (1)
Chris Thalha | 2 Mar 2011 4:28 pm
Well Done LSL, proud to be part of a network (First Complete) that is looking to increase in it's market position at a time when most others are edging back.
I can only see this as a sign of good things to come in terms of our client offerings through negotiating powers of an expanding and forward thinking network.
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