Slide 1: Half Year Results Presentation
Half Year Results Presentation Six months ended 30 June 2012 July 2012 1
Slide 2: Executive Summary
LSL Property Services plc Half Year results presentation July 2012 Executive Summary Underlying Group Operating profit up 23% to £14.5m Good profit growth underpinned by Marsh & Parsons as Surveying headwinds offset by strong progress in Agency Continued strong cash generation and balance sheet • Ca
Slide 3: Progress Highlights
LSL Property Services plc Half Year results presentation July 2012 Progress Highlights Good progress towards leadership in all key markets Agency – Asset Agency – Financial Surveying Agency – Branches Management Services LSL Market leader #2 in market Market leader #4 in market position 2012 2012 ma
Slide 4: Financial Performance
LSL Property Services plc Financial Performance
Slide 5: Summary Group Financials
LSL Property Services plc Half Year results presentation July 2012 Summary Group Financials Actual LFL – excl Marsh & Parsons H1 H1 £m H1 2012 H1 2011 2012 2011 P&L Revenue 120.8 103.4 17% 108.0 103.4 4% Underlying Group Operating 14.5 11.8 23% 11.6 11.8 (2%) Profit(1) Margin 12.0% 11.4% 10.7% 11.4%
Slide 6: Financial Performance – Estate Agency
LSL Property Services plc Half Year results presentation July 2012 Financial Performance – Estate Agency Market H1 2012 H1 2011 Inc/ (dec) House Puchase Mortgage Approvals 304,000 284,000 7% Actual – including M&P Like for Like – excluding M&P KPIs H1 2012 H1 2011 Inc / (dec) H1 2012 H1 2011 Inc/ (d
Slide 7: Marsh & Parsons
LSL Property Services plc Half Year results presentation July 2012 Marsh & Parsons Strong first six month contribution Actual – incl Earls Court Like for Like – excl Earls Court H1 12 H1 11 % inc H1 12 H1 11 % inc Revenue £m 12.7 12.3 3.1% 12.6 12.3 2.8% Operating Profit £m 2.9 2.8 2.5% 3.0 2.8 8.4%
Slide 8: Financial Performance – Surveying
LSL Property Services plc Half Year results presentation July 2012 AWARDS Financial Performance – - Winner Best Surveyor/Valuer Surveying Surveying Segment H1 2012 H1 2011 Mortgage approvals ‘000 589 598 (2%) Strong 2011 key lender comparatives Jobs ‘000 220 248 (11%) Turnover £m 34.4 38.3 (10%) Yea
Slide 9: Surveying: PI
LSL Property Services plc Half Year results presentation July 2012 Surveying: PI Additional Provision Relates to high risk period 2004 - 2008 • Higher house prices, high LTVs • Sub prime and considerable BTL lending Aggressive pursuit of claims mostly by lenders no longer active in the market Use of
Slide 10: Financials – Cashflow and Debt
LSL Property Services plc Half Year results presentation July 2012 Financials – Cashflow and Debt Continued Strong Cash Generation £m H1 2012 H1 2011 Operating Cashflows Operating Profit 14.5 11.8 Improvement in working capital following 2011 Depreciation 1.7 1.1 investment in new income streams PI
Slide 11: Market and Strategy
LSL Property Services plc Market and Strategy
Slide 12: Mortgage Market Overview
LSL Property Services plc Half Year results presentation July 2012 Mortgage Market Overview House Purchase Approvals Annual Growth in Mortgage Approvals (’000) (%) 800 40% 700 30% 600 20% 10% 500 0% 400 -10% 300 -20% 200 -30% 100 -40% Mar Apr Mar Apr Feb Feb 11 Jan-11 11 12 Jan-12 May Jun Oct Nov Ma
Slide 13: Surveying: Operations and Development
LSL Property Services plc Half Year results presentation July 2012 Surveying: Operations and Development Market Share Operational Update Surveying Market Share Delivery of high service levels and regular ’000 2008 2009 H1 2010 H1 2011 H1 2012 positive feedback from all key clients Jobs Performed 461
Slide 14: Estate Agency
LSL Property Services plc Half Year results presentation July 2012 Estate Agency Profitability and Market Share Key initiatives Target benchmark profit per branch £30k - ‘The Bridge’ call centre £50k Ongoing investment in people H1 2012 rolling 12 month Profit per branch increased by £6k to £10k (ex
Slide 15: Estate Agency – Counter Cyclical Income
LSL Property Services plc Half Year results presentation July 2012 Estate Agency – Counter Cyclical Income Total H1 Lettings and Asset Management income up 19% to £24.9m Balanced Growth: Asset Management and Lettings Lettings Lettings income (excluding Marsh & Parsons) up 24% £m 50.0 Now represents
Slide 16: Estate Agency – other businesses
LSL Property Services plc Half Year results presentation July 2012 Estate Agency – other businesses Financial Services Total LSL lending up from £3.2bn to £3.6bn across Pink, First Complete and Linear Revenue up 21% and H1 profit contribution of £0.4m Implementation of new common platform to improve
Slide 17: Summary
LSL Property Services plc Half Year results presentation July 2012 Summary Key areas of focus and growth opportunities Surveying - Service delivery excellence to lender clients in B2B - Expansion of private survey services Estate Agency - Continuing to increase branch profitability through growth of
Slide 18: Appendices
LSL Property Services plc Appendices
Slide 19: LSL’s Genesis
LSL Property Services plc Half Year results presentation July 2012 LSL’s Genesis LSL’s business transformation from a loss making insurance distribution arm Key Events July 2001 October July February January January 2011 New Acquisition Acquisition of onwards First Complete Completion on Q4 Renewal
Slide 20: Who are We Now?
LSL Property Services plc Half Year results presentation July 2012 Who are We Now? LSL Property Services plc Residential Property Buyers and Sellers Customer Capture Surveying Estate Agency Strategic Business Cross Surveying Selling Surveying Surveying Current Surveyors (Employees) Current Estate Ag