LSL has revealed that the cull of more than half of its network of Your Move and Reeds Rains branches earlier this year helped drive down revenue at the two businesses by over 9%.
The company says this is ‘slightly better’ than it had expected following the reduction of directly-owned branches from 308 to 144.
LSL’s announcement is made within its results for the first quarter of the year and, despite claiming that its branch reduction is going better than expected, overall revenue at LSL’s estate agency business reduced by 8.5% to £39.2 million.
The drop in both sales and lettings revenue at Your Move and Reeds Rains has been blamed on both ‘soft market conditions’ and the reduction of its branch network.
Other highlights from its most recent trading update include a 10% reduction in revenues at its upmarket London agency Marsh & Parsons.
Despite lower income from its estate agency businesses, the company’s overall performance held steady. Group revenue increased by 5.7% helped by strong performances at its surveying and financial services companies.
Surveying did particularly well where revenues jumped by 40% during the first quarter of the year.
“We continue to remain cautious on the residential property market outlook for 2019 given the current uncertainty over the UK and global political and economic environment and the potential impact on UK consumer confidence,” the company says.
“Although Brexit and the current political environment continues to create uncertainty, it is too early to judge if the Brexit outcome will further impact consumer sentiment.”