LSL Property Services (LSL) delivered a strong performance in 2015 despite the challenges facing estate agents. Diversity in the revenue stream played a big part in offsetting the rather moribund estate agency part of the business, which was restrained by a continued lack of transactional volume.
Even so, revenue from residential sales still managed a 1 per cent increase to £92.9m, with a 5 per cent drop in the first half offset by a 7 per cent improvement in the second half as activity picked up in the wake of the general election. The lettings business was more robust, with revenue up 12 per cent at £65.4m, while financial services, which includes mortgage advisory services, saw revenue climb 16 per cent to £50.5m.
LSL's already profitable surveying division also showed the benefits of a few operational tweaks that helped to push profit margins up from 21.4 per cent to 28.3 per cent. The number of surveys carried out fell from 371,000 to 327,000, but income per job rose by 17 per cent to £196, pushing revenue up by 3 per cent.
Analysts at Peel Hunt are forecasting adjusted pre-tax profit for the year to December 2016 of £43.5m and EPS of 33.4p, against £40m and 31p in 2015.
| LSL PROPERTY SERVICES (LSL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 262p | MARKET VALUE: | £273m | |
| TOUCH: | 258-263p | 12-MONTH HIGH: | 409p | LOW: 240p |
| DIVIDEND YIELD: | 4.8% | PE RATIO: | 9 | |
| NET ASSET VALUE: | 103p** | NET DEBT: | 37% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 218 | 17.6 | 12.9 | 8.7 |
| 2012 | 244 | 6.7 | 6.8 | 9.5 |
| 2013 | 259 | 17.1 | 13.6 | 10.5 |
| 2014 | 288 | 31.9 | 24.5 | 12.3* |
| 2015 | 301 | 38.6 | 29.7 | 12.6 |
| % change | +4 | +21 | +21 | +2 |
Ex-div: 24 Mar Payment: 6 May *Not including special dividend of 16.5p a share **Includes intangible assets of £167m, or 160p a share | ||||
