REG - LSL Property Svcs. - Full Year Trading Update

LSL Property ServicesAnnouncement

30/01/2025 07:00

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RNS Number : 1904V  LSL Property Services PLC  30 January 2025

 
 
 
             30 January 2025

 

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

 

Full Year Trading Update

2024 results ahead of expectations and materially above prior year

 

LSL issues a pre-close trading update for the 12-month period ending 31
December 2024(1).

 

Highlights

 

Trading during the second half of the year was resilient and much stronger
than 2023.

 

Group revenues for the 12 months ended 31 December 2024 are expected to
increase by c.20% to c.£173m (2023: £144.4m). Group Underlying Operating
Profit(2) is significantly ahead of prior year and slightly ahead of the
Board's prior expectations, with each of our three divisions reporting an
increase in Underlying Operating Profit.

 

Operating Margin(2) improved in each Division, with Group Operating Margin of
c.16% compared to LSL's historical norm of 12%, reflecting the benefits of the
reorganised Group structure. The Group cash flow conversion rate improved to
over 100% (2023: -2%).

 

Profit increased year on year in our Financial Services Network business and
our overall share of the UK purchase and remortgage market(3) increased to
11.6% (2023: 10.7%). Operating margin for the year improved to c.18% (2023:
14%).

 

Surveying & Valuation performance increased materially from prior year,
benefiting from normalising market conditions and contract extensions.
Operating margin for the year improved to c.23% (2023: 9%).

 

In the Estate Agency Franchising Division, we completed our first full year
with an entirely franchised branch network, delivering a material increase in
profits with operating margin at a record high of 28% (2023: 21%).

The Group retains a strong balance sheet, with Net Cash of £32.4m at 31
December 2024 (31 December 2023: £35.0m).

Current trading and outlook

 

Looking ahead, we remain confident about the Group's prospects. Whilst current
economic sentiment, higher interest rates, and the increase in employer NI
costs constitute headwinds, we entered the year with stronger pipelines than
in 2024 and January trading is in line with expectations.  We will continue
to invest further in each of our businesses to take advantage of the growth
opportunities identified, and at this early stage of the year we expect to
deliver an increase in profit for 2025 compared to 2024 in line with
expectations, as our markets continue to normalise. A further update on
current trading and outlook will be shared with the release of our preliminary
results.

 

Notes to trading update:

1.           This trading update is based on preliminary unaudited
financial information

2.           Group Underlying Operating Profit/Operating Margin
before exceptional costs, contingent consideration assets & liabilities,
amortisation of intangible assets and share-based payments

3.           Mortgage lending excluding product transfers. New
mortgage lending by purpose of loan, UK (BOE) - Table MM23 released January
2025

 

For further information, please contact:

 

 David Stewart, Group Chief Executive Officer
 Adam Castleton, Group Chief Financial Officer
 LSL Property Services plc                      investorrelations@lslps.co.uk (mailto:investorrelations@lslps.co.uk)

 Helen Tarbet
 Sophie Wills
 Burson 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.

 

Over 2,700 advisers representing over 11% of the total purchase and remortgage
market.

 

Its 62 estate agency franchisees operate in 310 territories.

 

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.

 

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

 

LEI: 213800T4VM5VR3C7S706

 

 

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