Lsl Property Services Plc · LSE:LSL

Lsl Property Services — FY2006 Earnings Presentation

13 slides from Lsl Property Services's earnings presentation, March 2007

  1. Slide 1: Preliminary Results Presentation

    Preliminary Results Presentation Year Ended 31 December 2006 Simon Embley, Group Chief Executive Officer Dean Fielding, Group Finance Director March 2007

  2. Slide 2: Key messages

    1. Overview Key messages Growing profitability of estate agency division Substantial Diversified business experience of model with some acquisitions and resilience to property corporate reform cycle Attractive margins Growing and highly and strong cash profitable surveying generation division 2

  3. Slide 3: Highlights

    Highlights  Strong maiden results  Turnover up 46% to £197.5m  Underlying operating profit¹ up 73% to £32.3m  Organic growth from Your Move and e.surv of 48%  Underlying operating profit margin¹ up from 13.9% to 16.4%  Adjusted proforma earnings per share² up 83% to 19.8p  Strong underlying o

  4. Slide 4: Financials at a glance

    1. Overview Financials at a glance A track record of growing profitability across all business segments EBITA 2006 Group Revenue Split 35 20% Financial Services 16.4% 18% 30 11% 13.9% 16% 25 EBITA margin 14% EBITA (£m) 10.1% 12% 20 10% 15 32.3 8% 10 6% Estate Agency 18.7 0.9% 13.4 4% Surveying 52% 5

  5. Slide 5: Strong Cash Flow

    Strong Cash Flow Strong cash generation with minimal capex requirement…… …….solid financial platform to make acquisitions and pay dividends IFRS IFRS Cash Flow Statement Year ended Year ended £m 31-Dec-06 31-Dec-05 EBITDA 35.0 21.7 Other Movements 0.4 - Movement in working capital 5.2 1.0 Interest p

  6. Slide 6: Operational Performance: Surveying

    Operational Performance: Surveying e.surv 2006 2005 Change e.surv KPI’s Turnover (£m) 68.3 56.4 21% Underlying Op. profit 2006 2005 Change (£m) 20.4 17.6 16% Mortgage approvals 3.5 3.4 5% Margin (%) 29.9 31.2 (millions) Jobs managed 935,256 674,730 38% Other brands* Market share (approx) 27% 20% 32%

  7. Slide 7: Future Growth: Surveying

    3. Surveying Future Growth: Surveying Growth opportunities across the sector Market shares (based on number of surveyors)  Lender (workforce management)  Acquisition of independents Independents Lender own  Organic growth from workforces  Market share gains and increases in jobs performed 30% 35

  8. Slide 8: Operational Performance: Estate Agency & Financial Services

    Operational Performance: Estate Agency & Financial Services 2006 2005 Turnover (£m) Your Move  Reeds Rains EA 63.8 54.5  Excellent results, profit margin at c.20% FS 13.0 12.3  Increased fees (1.22% to 1.31%) Total 76.8 66.8 Conveyancing and financial services income Reeds Rains  Strong brand an

  9. Slide 9: Estate Agency Organic Growth

    4. Estate Agency & Financial Services Estate Agency Organic Growth LSL growing presence and proven track record Combined branch network (December 2006) Expansion through franchising 100 92 90 80 67 70 60 54 No. branches 50 Scotland & North East 40 YM: 35 30 YMF: 20 RR: 26 20 10 8 0 2003 2004 2005 20

  10. Slide 10: Acquisition Strategy

    Acquisition Strategy To be a sector consolidator Acquisition pipeline Acquisition criteria  Limited number of large targets  Strong management team  Smaller brands also being considered  Strong brand  Recently acquired a majority stake in a 5 branch chain at a valuation of £3m  Under leveraged

  11. Slide 11: Diversified Business Model

    Diversified Business Model Some resilience to property cycle  Panel manager in surveying  Providing operational flexibility  Surveying a bigger percentage of profits than competitors  Surveying profits less cyclical  Potential to grow margins and profits in estate agency  Some downside protect

  12. Slide 12: Market Outlook and Current Trading

    Market Outlook and Current Trading  Market remains robust despite interest rate rises Mortgage approvals 1998 - 2006 UK housing transactions and interest rate 4,106 4,500 200 16 3,650 Housing Transactions (000) 4,000 3,566 3,534 14 3,381 UK Interest Rate 150 12 3,500 10 2,808 100 8 3,000 Total numb

  13. Slide 13: Summary

    Summary Financial Results Market Outlook and Current Trading  Strong maiden results  Activity levels in 2007 to date are encouraging  Strong cash generation – net cash from operating  Interest rates and Home Information Packs could activities of £28.2m impact the market  LSL well positioned to

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