Employees at Your Move, Reed Rains and Marsh & Parsons will be enjoying jollier than usual Xmas meals this year following their parent company’s latest trading update.
Group revenues at LSL for the first ten months of the year increased by 3.7% to £270.5m and by 7.5% for the most recent four months.
During this period sales revenues reduced by 5%, although this was made up by a 4% increase in lettings income and a 15% increase in revenues within its financial services operation. Also, its surveying business e.surv has performed well, driving up its revenues by 22%.
But Brexit and the government tax-take on upmarket buyers and landlords weighs heavily on its results. Residential sales income dropped by 9% during the reporting period, although Marsh & Parsons did better than might be expected as the London sales market continues to weaken.
“Market activity levels have remained subdued in 2018 with continued uncertainty over the UK and global political environment and [its likely] impact on UK consumer confidence [and therefore] we continue to remain cautious on the market outlook for 2019,” the company says.
Despite this, LSL says expects its full-year profit figures will be in line with earlier expectations. But the results didn’t set the City alight. Investment analysts at Peel Hunt released a research report this morning recommending that investors should hold their shareholding in the company.
LSL’s share price lost nearly 7% during a two-day period last week, reflecting investor worries about the impact of Brexit on the housing market.