REG - LSL Property Svcs. - AGM STATEMENT

LSL Property ServicesAnnouncement

25/05/2023 07:00

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RNS Number : 5783A  LSL Property Services PLC  25 May 2023

 
 
 25 May 2023

LSL Property Services plc ("LSL" or "Group")

AGM Statement

LSL will hold its Annual General Meeting (AGM) today in London at 3:15pm at
210 Euston Road, London NW1 2DA. At the AGM, Bill Shannon, outgoing
Non-executive Chair, will make the following comments:

The period since our last Annual General Meeting has been both busy and
productive, with significant progress made in re-structuring and re-focusing
the Group against the backdrop of very challenging market conditions. The
successful completion of several large and complex projects during this time
is testament to the commitment of the whole LSL team, for which I would like
to place on record the thanks of the Board.

Just over two years ago, we set out the key elements of a new strategy that
placed at its heart our Financial Services Network. As well as capitalising on
the significant growth potential we had identified in Financial Services, we
resolved to develop a simpler and more resilient business model that was less
vulnerable to housing market cycles, allowing us to better pursue other
exciting opportunities to grow our leading Surveying & Valuations business
and develop the potential of our Estate Agency Franchise operation.

Although market conditions have often been difficult, I am pleased by the very
substantial progress we have made. This includes consistent and strong
financial performance in our Financial Services Network and Surveying &
Valuations businesses, the transfer of our direct-to-consumer brokerages to
Pivotal Growth, our joint venture with Pollen Street Capital, and the disposal
of Marsh & Parsons at an attractive valuation.

Most recently, we announced on 4 May that our entire owned Estate Agency
Network will convert to become franchises, in doing so transforming the Group
into a business-to-business services provider, with a much smaller cost base
and significantly less exposure to housing market cycles. Of our previously
183 owned branches, 143 are now trading as franchises following a smooth
handover, with the remaining 40 expected to complete imminently. The resulting
business, with over 60 franchisees operating more than 300 branches, will be a
leading player in the sector and is well-placed to grow.  Importantly, it is
also a significantly less complex business to manage, freeing up valuable
management time, and will enable the Group to deliver margins that are
structurally higher than those it has reported historically.

As we set out on 13 April in our Full Year Results announcement market
conditions remain challenging as expected in H1, albeit there have been some
early signs of improved trading since then and we continue to expect an
improvement in H2, supported by the remortgage market and increasing consumer
confidence. The Board's expectations for the full year remain unchanged, with
a more pronounced weighting of results towards H2 than would typically be the
case.

Our focus in Estate Agency will be to finish the re-structuring required to
realise the cost savings that will result from the transition to franchising
and position the business to deliver improved returns in 2024.  A more
detailed update on trading conditions and the outlook for the Group will be
given at the release of the Interim Results for 2023.

Immediately following this AGM, I will step down as Chair and from the Board
of LSL.  I have thoroughly enjoyed my time on the Board and following the
significant strategic progress we have been able to report, I believe the
Group is now very well-placed for future growth. I would like to thank my
Board colleagues, management and the staff at LSL for their support, which I
appreciate greatly. I will follow the progress of the Group with great
interest, and I have every confidence it will go from strength-to-strength.

 

For further information, please contact:

 

 David Stewart, Group CEO

 Adam Castleton, Group CFO
 LSL Property Services plc   investorrelations@lslps.co.uk (mailto:investorrelations@lslps.co.uk)
 Helen Tarbet

 Simon Compton

 George Beale
 Buchanan                    0207 466 5000  LSL@buchanan.uk.com (mailto:LSL@buchanan.uk.com)

 

Notes on LSL

 

LSL is one of the largest providers of services to mortgage intermediaries and
estate agent franchisees.

 

Its c.2,900 advisors represent around 10% of the total purchase and remortgage
market. PRIMIS was named Best Network, 300+ appointed representatives at the
2022 Mortgage Strategy Awards.

 

Its 62 estate agency franchisees will operate a network of just over 300
branches.

 

LSL is also one of the UK's largest providers of surveying and valuation
services, supplying seven out of the ten largest lenders in the UK. e.surv
was named Best Surveying Firm at the 2022 Mortgage Finance Gazette Awards.

 

For further information please visit LSL's website: lslps.co.uk
(http://www.lslps.co.uk/)

 

 

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