Shares in LSL Property Services jumped more than 6% on Friday after the estate agency firm announced that trading profit for 2020 will be “significantly” up on the previous year.
The company’s stock increased 6.3% to 272p following its announcement that full-year group underlying operating profit is expected to be £41.5m, beating 2019 levels.
This profit does not take Covid-related costs into account, and includes money received through the government’s Coronavirus Job Retention Scheme.
Group revenue for the year is expected to drop by around 15% to £266m due to the pandemic, the restructuring of its Your Move and Reeds Rains brands and the tenant fee ban introduced in 2019.
But December did see group revenue rise 12% compared to the corresponding month a year earlier, owed in part to a 23% increase in mortgage completions and a 25% hike in surveying revenue.
Meanwhile, residential sales exchange income was in line with expectations, and the pipeline at the end of the year was over 65% above 2019 levels.
“There is currently no evidence of a material increase in residential fall-through trends,” LSL said. “We continue to monitor this closely.”
LSL had net bank debt of about £2m at the end of 2020, down from £41.9m in 2019.
Adjusted for Covid-19 related payment deferrals, mainly in relation to tax payments due as agreed with HMRC, the underlying net bank debt was around £17m.
Not buying CWD is probably the best thing that happened to LSL in 2020. Seeing these numbers I do not think they need the burden of turning around such a big task, instead they are now in a position to be far more creative.
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Well done LSL now look well capable of mounting their own attack on CWD if they could find an investor with a warchest ! Very unlikely ,mind
Should think a similar trading experience by Countrywide who have yet to update where the brands have been busy .
Apparentally there will be a short trading statement contained in the presentation to shareholders in February when the BODS hope that the deal with Connells becomes rubber stamped .Take their generous goodbye leaving cheques ,Thanks very much and good night
The main difference with LSL is that CWD’s operational profit will be greatly reduced by the whole host of corporate action the BODS have engaged in during FY 20
Whilst the brands have been beavering away earning it the BODS have been frittering it away cranking up costs & fees.
The abortive sale of LSH and continuing action chasing the Dane for costs ,.new finance arrangements with banks, failed merger with LSL. Costs increased due to the fact that the BODS still hoped the LSH deal would still materialise
A whole raft of costs incurred with the failed deal with Alchemy & now with Connells .A vertiable professionals fees fest and no doubt will be shovelling their bills in double quick time
Wouldn’t be surprised that these costs are well north of £20m buried somewhere in the small print
So just as Back To Basics seem finally to have started working at CWD this inept set of BODS heading for the door
Pay a special thought for those Non -Exec Directors who have rolled up at CWD over the past 6 years quietly slope off to take up yet another clutch of these lucrative appointments,reputations intact .
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Will LSL pay a dividend and if so what about the Gov support monies ref payback
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It is a great set of results considering what happened. Is it right though that an increase in profit is on the back of the furlough subsidy it received and only paying it’s furloughed staff a max of 80% of salary or £2,500. I understand they also did not pay staff commission that was earned on deals agreed prior to lockdown that exchanged during lockdown. So an increased profit achieved by paying staff less and a government subsidy. I suspect the top brass will nevertheless collect a hefty bonus as well. Apparently the welfare of staff is their prime concern, if you believe the preliminary results. If that is the case pay your staff what is due. Connells paid their staff full wages on Furlough.
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Is it right Connells make a £135m bid for CWD yet took millions of public money in furlough payments?
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LSL staff were shafted. No wage top ups, no commission paid. Now I’m hearing from inside no annual bonus will be paid, even though they are already accrued for in 2020. LSL are good at appearing to care about staff, they don’t. In reality it’s only profits they care about.
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