LSL still buying as it reveals pre-tax profits of £6.5m
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LSL Property Services has reported pre-tax profits of £6.5m for the first six months of the year and reveals it is still on the acquisition trail.
This compares to a £19.7m profit in the first six months of 2010. But its 2010 results included an exceptional £13.4m gain from the acquisition of Halifax Estate Agencies.
It says the reduction in profit was expected after planned investment of £2.6m in growing its market share in the estate agency sector.
Group revenue increased 2% to £103.4m, with a group underlying operating profit of £11.8m, down on £13.4m in 2010. LSL bought Pink Home Loans from Skipton Building Society in October 2010 and purchased Home of Choice, rebranded to First Complete, in May 2011.
LSL says it has made good progress during the first six months of 2011 in building a simplified operating model across its intermediary networks and as a result profitability is improving as expected.
Roger Matthews, chairman of LSL, says while market conditions remain extremely challenging with volumes at less than 50% of historic norms, it is pleased with its results.
He says: “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.”
He says 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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