LSL has posted a robust set of interim results for the six months to 30th June 2020.
Although group revenue was down 25% against the same period of 2019, at £114.9m, the underlying profit improved by 3% to £12.5m
Financial services underlying operating profit was up 14%, estate agency up 3%
Surveying was down 23% with activity significantly impacted by lockdown.
The group has £13.8m receivable from the Coronavirus Job Retention Scheme. at 31st July about 2,800 of the 3,300 employees had ended their furlough and returned to work.
The bounceback following lockdown is evident from the strong trading in June, carrying through to July, with estate agency underlying operating profit leaping up 41% and the surveying business up by 150%.
Simon Embley, Group Chairman, said:
“I am pleased to confirm that LSL has performed extremely well, during a period of unprecedented uncertainty and disruption. This is testament to the underlying strength of the Group, and its ability to respond quickly and effectively to rapidly changing market conditions.
“After a strong first quarter, we reacted decisively to the emergence of the Covid-19 virus, managing our operations and cash position to secure the position of the Group, even in the event of the lockdown continuing throughout the year. This same agility served us well as restrictions eased, as we rebuilt our capability quickly to trade strongly throughout June.
“As a result, I can report an Underlying Operating Profit slightly ahead of last year, and in so doing I cannot highlight strongly enough the exceptional contribution made by management and staff working in all parts of the Group. Their commitment to our customers and to the Group has been exemplary and I would again like to express my appreciation.
“Although we remain alert to the risk of more disruption, and will take prompt action should it occur, I am increasingly optimistic about market conditions, and am confident in our ability to compete successfully. Our focus is increasingly turning to investing for future growth, as well as optimising current performance. We have performed extremely well in 2020, and I am confident about the future prospects of the Group.”
Commenting on the results, Anthony Codling of Twindig says:
“LSL is not out of the woods yet. Around 15% of staff remain on furlough and wisely the Group is not willing to provide full-year guidance due to the high level of uncertainty, the Group’s Balance Sheet is not as strong as some of its peers but given the circumstances, LSL appears to be in good health.”
Redundancy figures not being talked about yet. It’s likely those remaining on furlough will all be made redundant.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Yes, will be interesting to see what happens, I think there will be some pain to come for this company and others.
I am told by a reliable source that Marsh and Parsons are intermittent with/behind on rent payments for some of their offices, of course if you’re not paying rent that cash is sitting in the bank (I assume) and will skew the overall group figures.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Surely HMRC are going to spot the correlation between increased profit and the sum claimed using the Furlough scheme…….They might take a view that it was not needed, and ask for a big chunk of it back? And wait until the redundancies do come for the corporate businesses……will only need a couple of “whistle blowers” to say they had been encouraged to do a bit of work from home and who knows where it will end?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register