Lsl Property Services Plc · LSE:LSL
Lsl Property Services — FY2009 Earnings Presentation
17 slides from Lsl Property Services's earnings presentation, March 2010
Slide 1: Preliminary Results Presentation
Preliminary Results Presentation Year Ended 31 December 2009 Simon Embley, Group Chief Executive Officer Dean Fielding, Group Finance Director March 2010
Slide 2: Key messages & delivery 2009
Key messages & delivery 2009 Lettings Lettingsand andasset assetmanagement management income incomegrowth growthofof64%. 64%. All key brands profitable All key brands profitable Acquisition AcquisitionofofHalifax HalifaxEstate EstateAgency Agency Group creating the second largest Estate Groupprofit*
Slide 3: Highlights
Highlights Group Underlying Group Operating Profit up 55% to £28.3m (2008: £18.2m) Adjusted Basic earnings per share up 93% to 18.1p (2008: 9.4p per share*). Return to dividend list: Interim dividend declared of 5.4p per share (2008: nil) Significant cash generation during the year Surveying
Slide 4: Who are we now?
Who are we now? LSL Property Services plc Current Current Surveyors (Employees) Estate Agency Owned Franchised e.surv 343 Your Move 238 96 Barnwoods 84 Reeds Rains 157 53 Total 427 LSLi 18 31 Total 413 162 ALL BRANCHES 575 Expertise in residential property management 4
Slide 5: LSL's genesis
LSL’s genesis LSLs LSLs business business transformation transformation from from aa loss loss making making insurance insurance distribution distribution arm:- arm:- Key Events July 2001 October July February onwards January January Present Acquisition of Acquisition of Estate agency First Complete
Slide 6: Financials at a glance
Financials at a glance A strong result in a difficult market Mortgage approvals for house purchase remain at low point in the cycle EBITA Full Year * X average 1994 to 2007 was 1.2m 40 17.9% 20% X 2009 at 0.6m, half of the historic norm 16.4% 16.9% 18% 35 Mortgage approvals are still significant
Slide 7: Group Income Statement
Group Income Statement Group Financial Overview * (£m) 2006 2007 2008 2009 % Change Segment highlights Revenue Estate Agency 124.0 129.6 81.7 87.7 7% Estate Agency turnaround £8.4m loss to Surveying 74.0 89.9 80.1 70.0 -13% £6.7m profit Total 198.0 219.5 161.8 157.7 -3% Surveying profit of £23.6
Slide 8: Strong Cash Flow
Strong Cash Flow Strong cash generation and significant reduction in gearing £m 2008 2009 Underlying Group operating profit 18.2 28.3 Financial Gearing Depreciation & other 2.3 1.4 Proceeds from sale of equipment 0.1 0.0 60 48.7 49.2 Loss on sale of equipment 0.4 0.0 50 Exceptional costs (excluding
Slide 9: Operational Performance: Surveying
AWARDS Operational Performance: Surveying ‐ Winner Best Surveyor/Valuer Continued growth in market share Surveying Segment Market Share Growth % 2006 2007 2008 2009 Change 2005 2006 2007 2008 2009 Turnover (£m) 74.0 89.9 80.1 70.0 -12% Jobs performed ('000s) 378 434 533 461 439 Expenditure (£m) -53.
Slide 10: Surveying's embedded relationships
Surveying’s embedded relationships Providing Providing aa range range of of services services across across the the UK’s UK’s lending lending market market Service provider Panel manager Joint panel manager Source: Company data The UK’s market leading valuation distributor 10
Slide 11: Surveying: Development
Surveying: Development Market backdrop New products & opportunities Market conditions remain difficult: Scottish single survey launched and embedded, Total mortgage approvals down by 34% yoy providing additional income Claims environment with continuing repossessions Early adopters of RICS H
Slide 12: Operational Performance: Estate Agency
Operational Performance: Estate Agency Estate Agency Segment Estate Agency KPIs 2008 2009 % Change 2007 2008 2009 Exchange Units 13683 14815 8% Revenue (£m) 129.7 81.7 87.7 Exchange fees (£m)* 28.6 28.1 -2% Expenditure (£m) -116.7 -90.1 -81.0 Financial Services income (£m)* 14.7 11.0 -25% Operating
Slide 13: Estate Agency: HEAL
Estate Agency: HEAL Acquisition Acquisition of of Halifax Halifax Estate Estate Agencies Agencies Ltd Ltd A high quality branch network, register of clients and pipeline Transformational deal of sales on favourable terms Includes an established asset management business with a 206 High Stree
Slide 14: Estate Agency: HEAL Financials
Estate Agency: HEAL Financials Targeted Targeted run-rate run-rate cost cost savings savings delivered delivered HEAL Operating Results HEAL Turnover analysis 2009 YM / RR HEAL estim ated 2007 2008 Total Per Total Per Branch Branch Revenue (£m) 96.2 54.1 Exchange Unit 14815 6516 Expenditure (£m) -12
Slide 15: Market Outlook
Market Outlook Short term uncertainty Long term fundamentals strong UK Mort Apps Number of housholds, England, 1971 - 2026 1650 30000 1450 Number of Approvals (000s) 25000 Number of Households (in '000s) 1250 20000 1050 15000 10000 850 5000 650 0 450 71 74 77 80 83 86 89 92 95 98 01 04 07 10 13 16 1
Slide 16: Board will be strengthened during 2010
Board will be strengthened during 2010 Executive Director Surveying - Paul Latham retiring, remaining as a NED X Alison Traversoni appointed – 31st May 2010 X currently MD of e.surv X 20 years experience with the Group X Shareholding in LSL acquired as part of the MBO Executive Director Estate A
Slide 17: Summary
Summary Experienced management team Highly profitable surveying division Second largest estate agency in the UK by number of branches Fast growing asset management business Dividend reinstated Strong cash generation, low financial gearing (less than 1 x EBITDA) Significant upside as ma