LSL Property Services expects housing sales volumes to “remain suppressed” in the coming months.
Reporting on the group’s interim results, Simon Embley (left), LSL Property Services’ chairman, said, “The Group has delivered a strong first half performance in a changing market. I am particularly pleased with the profit growth in both Estate Agency and Surveying.
“Whilst we expect Residential Sales volumes to remain suppressed in the second half, trends in other parts of our business are expected to be more resilient. Our Lettings business continues to perform well, now representing 29 per cent of total Estate Agency income. Mortgage cost and availability remain positive for the UK housing market with increasing distribution of products through intermediary channels which will support our growing Financial Services business.
“Whilst these are uncertain times in the residential housing market, the Group has strong fundamentals with a robust balance sheet and relatively low levels of gearing. The business will adapt quickly as it has in the past and is well positioned to navigate the current market conditions. I remain confident that LSL will continue to deliver long term value to our shareholders.”
LSL’s share price was up 0.31 per cent at time of writing after the company announced group revenue was up eight per cent for the six months ending 30 June, at £151.4m compared to £140.2m in 2015. Profit before tax was up from £6.2m in 2015 to £8.4m – a jump of 35 per cent.