Estate agency income at LSL plummeted in the fourth months to the end of October – a financial hangover from shutting Your Move and Reeds Rains branches earlier in the year.
The group said that revenue dropped by 19%, “materially impacted by the planned reduction in the size of Your Move and Reeds Rains branch networks during Q1 2019.
“Excluding the impact of the closure of Your Move and Reeds Rains branches, estate agency revenue for the four-month period was down 5%.”
Despite the drop, LSL Property Services said that its expectations for this year remain unchanged.
It said it is confidence of delivering a profit in line with its earlier expectations.
Group revenues for the ten months to the end of October fell by 3%, to £262.8m, including the impact of the ‘re-shaping’ of the Your Move and Reeds Rains branch networks.
Excluding that impact, group revenues for the first ten months of this year rose by 5%.
Flagship London brand Marsh & Parsons was said by its parent company to have delivered a “resilient performance” despite challenging conditions. Its total revenue was down 4%.
Branch closures at Reeds Rains and Your Move were announced in February this year and were speedily carried out.
Yesterday’s trading statement also sounds a cautious note over next year’s market conditions.
Group CEO Ian Crabb said: “LSL has delivered a creditable performance in the 10 months to 31st October 2019. This performance has been delivered during a period when market activity levels have remained subdued given the continued uncertainty over the UK and global political and economic environment.
“LSL’s performance illustrates the benefits of the Group’s diversified strategy and the self-help initiatives being taken to respond to current market conditions.
“Until we have greater clarity on the political backdrop, we remain cautious on the market outlook for 2020 and we will continue to monitor market conditions closely.
“The group’s diversified strategy combined with its robust balance sheet gives the board confidence of the opportunities for further positive progress for thegGroup.”