LSL looks at acquisitions as profits increase
ESTATE agency and surveying group LSL Property Services today said annual pre-tax profits had increased by more than 50% in 2010 but is still cautious about the outlook for the property market.
Announcing its preliminary results LSL, which has moved its registered address from York to Newcastle, said group revenue increased by 31% to £206.6m for the year ended December 31, driving a 13% increase in underlying group operating profit to £31.9m from £28.3m the previous year.
Like-for-like group revenue increased by 16% to £182.4m and profit before tax before exceptional items increased by 52% to £25.8m.
LSL, which has become one of the largest UK mortgage intermediaries following the acquisitions of Home of Choice and Pink Home Loans, said it has a strong balance sheet with net debt reduced by £20.8m to £4.9m at December 31.
Chairman Roger Matthews said: “The group made excellent progress in a market where transaction levels are circa 50% of historic normal levels. LSL still has a cautious view of the market for 2011 in view of the ongoing shortage of available mortgage finance and broader well documented economic challenges.
“However, we are confident that the group can build on the market share gains made in 2010 and grow the business even in these market conditions.
“With a very strong balance sheet, we are well placed to grow both organically and through further acquisitions in the current market and deliver further substantial growth when transactions volumes recover.”
LSL has proposed a final dividend of 5.9p per share and the total dividend for the full year has been increased by 56% to 8.4p.
