LSL Property Services reports pre-tax profit of £6.5m
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LSL Property Services has reported a pre-tax profit of £6.5m for the first six months of the year, down on £19.7m in the first six months of 2010.
Last year’s results included an exceptional gain of £13.4m arising on acquisition of Halifax Estate Agencies.
Group revenue increased by 2% to £103.4m, with a group underlying operating profit of £11.8m, down on £13.4m in 2010.
It says the reduction in profit was expected after planned investment of £2.6m in growing market share in estate agency.
The results say it has made good progress during the period in building a simplified operating model across LSL’s intermediary networks, including First Complete and Pink Home Loans and as a result profitability is improving as expected.
Roger Matthews, chairman of LSL, says it is still on the lookout for further acquisitions.
He says: “While market conditions remain extremely challenging with volumes at less than 50% of historic norms, we are pleased with progress during the first half year which included substantial investment in key organic growth initiatives.
“LSL retains a cautious view of the market for 2011 given the continued shortage of available mortgage finance and the general economic uncertainty particularly in the financial sector.
“Despite this backdrop the results from the first half have reaffirmed our strategy of growing market share in Estate Agency and developing surveying services for private buyers and the board remains confident of delivering further progress in 2011.
“Even without recovery in market transaction volumes the group is well positioned to increase shareholder value both through the delivery of the organic growth initiatives and from further value accretive acquisitions.”
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