Estate agency and chartered surveyors group LSL Property Services plc (LON: LSL) has seen growth in first half profits year-on-year, despite exceptional costs.
For the first half, group revenue was up 1% to £154.1 million and Underlying Operating Profit was up 5% to £12.2 million on-year (from £11.6 million for H1 2018), while Adjusted EBITDA grew 37%.
Underlying Operating profit was up in the Estate Agency from £1.4 million to £4.0 million and the Financial Services grew 20% from £3.6 million to £4.3 million. However, Operating Profits in the Surveying Division were down from £8.6 million to £6.3 million and the Company notified investors of exceptional costs totalling £13.4 million, for the reshaping of Your Move and Reeds Rains.
LSL Property Services comments
Simon Embley, Chairman, said,
“The Group delivered a positive financial performance in the first half of 2019, with positive growth in Revenue and Underlying Operating Profit, despite subdued residential property market conditions.”
“The Board remains confident that the Group will deliver a full year Underlying Operating Profit in line with its prior expectations, as the business is expected to continue to benefit from the range of LSL’s ongoing self-help measures.”
“Whilst we continue to remain cautious on the residential property market outlook for 2019 given the current uncertainty over the UK and global political and economic environment and the potential impact on UK consumer confidence, the Board is confident that the Group, with its market leading brands, broad portfolio of residential property services and the benefits from the proactive self-help measures, remains in a strong position to perform well given a range of potential market conditions, in order to maximise Shareholder value.”
“The Group has a robust balance sheet with relatively low levels of gearing and is highly cash generative at an operational level. The Board remain confident of the opportunities for further positive progress for the Group.”
The Company’s shares are currently not trading but last closed at 200.00p a share 30/07/19 12:02 BST. Peel Hunt analysts reiterated their ‘Hold’ stance on LSL Property Services stock. The Group’s p/e ratio is currently 7.35 and its dividend yield currently stands at 5.45%.
Elsewhere in property development and estate agency news, there have been updates from; Countryside Properties PLC (LON: CSP), Ashley House Plc (LON: ASH), Persimmon plc (LON: PSN) and McKay Securities plc (LON: MCKS).