LSL expectations unchanged

LSL, a leading provider of residential property services incorporating both estate agency and surveying businesses, expects underlying operating profit for calendar 2016 to be in line with its forecasts.

Group revenues for the ten months ended 31 October 2016 increased by 3.0% to £258.0m (2015: £250.6m) reflecting overall growth in both Divisions: Estate Agency up 3.5% and Surveying up 0.9%.

An update says: "Whilst Group revenues for the four months ended 31 October 2016 of £106.6m (2015: £110.4m) were 3.4% lower year on year reflecting the effect of lower activity levels in the residential sales market, strong performances during the same four month period were delivered in Lettings revenue (+7%) and Financial Services revenue (+24%) reflecting the strength of the group through its broad range of businesses across the residential property services sector."

It continues: "With the reduction in market activity levels in the second half of 2016 and uncertainty over UK economic conditions, we are cautious on the market outlook for 2017. However, mortgage costs and availability remain positive and the medium to longer-term fundamentals of the UK housing market remain positive.

"LSL has very strong fundamentals, with a robust balance sheet and a balanced business portfolio including its counter-cyclical Asset Management business. The business is well positioned to adapt quickly to changing market conditions to deliver long-term value to shareholders."