Estate agent LSL Property Services reports ‘extremely encouraging’ July trading
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Estate agent LSL Property Services, the owner of Your Move and Reeds Rains, reported “extremely encouraging” trading in July after the housing market reopened.
The figures
In the six months to 30 June, group underlying operating profit was up £300,000 to £12.5m.
The figure does not include coronavirus-related costs of £2.8m.
It also does not account for £4.4m in exceptional charges relating to the £1.7m transformation of the surveying business and estate agent closures, and £2.4m on costs related to an aborted takeover of Countrywide.
Revenue fell 25 per cent to £114.9, due to the Covid-19 pandemic, the closure of 164 branches in February, and the tenant fee ban introduced in June last year.
Financial services operating profit increased 14 per cent and estate agent profit jumped three per cent.
However surveying profit dropped 23 per cent, as the coronavirus lockdown prohibited physical valuations.
Why it’s interesting
LSL said July trading is “extremely encouraging” with “strong front end sales metrics across all three divisions”.
In the financial services unit, mortgage applications were up 20 per cent on the previous year. July was the strongest month of 2020 for new mortgages.
Estate agency instructions surged 20 per cent compared to July last year, with net sales and instructions the highest in the year so far.
What LSL said
Group chairman Simon Embley 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.
He added: “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.”