2016 results
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Latest property news
LSL sells ZPG shares for £32.9 million to prop up its 2016 results
The UK’s second largest corporate LSL Property Services sold all its ZPG shares last year for £32.9 million to “protect its balance sheet” during a difficult 2016 that saw profits and margins tumble. LSL is the parent company of 12 estate agency brands including YourMove, Reeds Rains and Marsh Parsons. It also employs 4,990 people in the UK across its three key areas, surveying, estate agency and mortgages. The group’s profits during 2016 dropped by 19% on revenue that edged up from £300.6 to £307.8 million. But its balance sheet looks better following the sales of its entire stock of Zoopla shares. Operating margin also decreased, from 14.3% to 11.3%. “After a strong overall first half performance in the Estate Agency Division we reacted decisively to the changing market conditions in the second half of the year with selective cost reduction measures,” says Chairman Simon Embley (pictured, left). “[This included] branch closures and [we] protected the balance sheet by disposing of the Group’s shareholding in Zoopla and pausing acquisition activity.” LSL strategy revealed LSL also revealed its plans for next year and beyond within the preliminary announcement including several of its key strategies. Ian Crabb, the Group Chief Executive (pictured, right)…
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Latest property news
Connells Group pre-tax profits rise, helped by £17m ZPG shares sale
Agent giant Connells Group has today reported a strong performance for 2016 including pre-tax profits of £73.4 million, an increase of 17.4% on the year before. This includes £17 million gained from selling some of its shares in ZPG Plc last year. Until then Connells Group had been one of ZPG’s top ten major shareholders with 16.73 million shares held, a million less than Countrywide – the two were part of a trio of agents including LSL to sign strategic partnerships with what was then just Zoopla in 2010. But Connells Group is doing well even with the ZPG windfall taken out. The group, which includes Connells and William H Brown, Barnard Marcus and Peter Alan, says it sold 8% more properties last year, 5% more new homes, generated 44% more income from its land division and 19% more cash via its new homes team. Other indicators twitching wildly include those at its mortgage arranging business where income rose 18% based on a lending total of £8.2 billion and 10% more mortgages arranged. There were also rises in income for its conveyancing and survey and valuation businesses. “All parts of the business delivered a strong performance and, considered alongside the…
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