Lsl Property Services Plc · LSE:LSL

Lsl Property Services — H1 2008 Earnings Presentation

14 slides from Lsl Property Services's earnings presentation, August 2008

  1. Slide 1: Half Year Results Presentation

    Half Year Results Presentation Six Months Ended 30 June 2008 Simon Embley, Group Chief Executive Officer Dean Fielding, Group Chief Finance Director August 2008

  2. Slide 2: Key messages & delivery H1 2008

    Key messages & delivery H1 2008 Estate Agency diversification Despite market conditions: Exchange income down 50% Segment revenue down 24% Other income significant growth Barnwoods: H1 profit £6.1m Group profit Newly set-up asset Growing diversity Despite market, H1 profit management company of esta

  3. Slide 3: Highlights

    Highlights  Satisfactory half year results, despite 54% fall in mortgage approvals for house purchase  Group revenue down 10% to £93.1m (2007: £102.9m)  Underlying Group Operating Profit¹ down 41% to £9.3m (2007: £15.6m)  Group profit before tax, amortisation and exceptionals of £7.8 m (2007: £1

  4. Slide 4: Financials at a glance

    Financials at a glance EBITA Full Year EBITA Half Year 18 20% 40 20% 16.3% 16.7% 16 15.2% 18% 35 18% 14.5% 13.9% 16% 14 16% EBITA margin 30 14% EBITA (£m) EBITA margin 14% 12 EBITA (£m) 25 10.1% 12% 10.0% 12% 10 8.8% 20 10% 10% 36.5 8 15.6 32.3 8% 8% 15 13.3 6% 6 6% 10 18.7 9.3 0.9% 13.4 4% 4 4% 5 2

  5. Slide 5: Cash Flow

    Cash Flow Full Year H1 H1 H1 2007 2006 2007 2008 Operating profit 36.5 13.3 15.6 9.3 Exceptional costs (1.4) (3.4) Depreciation & Other 2.2 1.4 1.1 1.1 Dividend income 0.4 - 0.3 0.3 Interest paid (3.4) (2.0) (1.3) (2.0) Interest received 0.4 0.5 0.1 0.2 Movement in working capital 4.2 (2.7) (1.3) (9

  6. Slide 6: Operational Performance: Surveying

    Operational Performance: Surveying Surveying : results e.surv : KPIs 2007 H1 2007 H1 2008 % H1 2007 H2 2007 H1 2008 Turnover £89.9m £40.0m £44.9m +12% Mortgage approvals (000s) 1778 1514 1233 Profit £26.3m £11.7m £15.4m +31% Jobs performed (000s) 227 216 184 29.3% 29.1% 34.3% % share 12.8% 14.3% 14.

  7. Slide 7: Surveying's embedded relationships

    Surveying’s embedded relationships Providing a range of services across the UK’s lending market Exclusive panel manager Service provider Panel manager and manager of lender employed surveyors Joint panel manager Source: Company data 7 The UK’s market leading valuation distributor

  8. Slide 8: Surveying: Development

    Surveying: Development Market backdrop New products & opportunities  31% fall in mortgage approvals  Scottish Single Survey launches 1st November  Lower valuation volumes in market  Home buyers reports  Smaller valuers feel squeeze with a number going into administration  New lender contract o

  9. Slide 9: Operational Performance: Estate Agency

    Operational Performance: Estate Agency Estate Agency Segment Your Move & Reeds Rains KPIs Full Year Full Year H1 H1 H1 2006 2007 2006 2007 2008 Exchange units 15990 8525 -47% Average fee £2210 £2139 -3% Exchange fees 35.3m 18.2m -48% Turnover 102.6 107.1 47.5 52.8 39.4 Other income 20.7m 22.9m +11%

  10. Slide 10: Estate Agency & Financial Services

    Estate Agency & Financial Services Innovative investment in organic growth H1 2007 H1 2008 Your Move & Reeds Rains Lettings & non-agency income 10.3m 14.3m Continued investment in non-agency/non-FS related income First Complete Operating loss - (0.6m) Service model, staffing & IT model in place. Con

  11. Slide 11: Market context

    Market context Market conditions difficult; no current signs of improvement House Purchase (000’s Total Approvals (Mortgages & Remortgages) 2005 2006 2007 2008 % change 2005 2006 2007 2008 % change January 51 78 80 50 -38% January 196 229 242 207 -14% February 74 97 101 65 -36% February 241 266 282

  12. Slide 12: Market context (house purchase)

    Market context (house purchase) Housing transactions  Unprecedented level of transaction volume (Land Registry) re-based decline - not seen even in the early 90’s 2500 2000  Despite market backdrop: 1500  worldwide commodity inflation  low consumer confidence 1000  lack of mortgage availability

  13. Slide 13: Diversified Business Model

    Diversified Business Model Some resilience to property cycle  Panel manager in surveying  Providing operational flexibility  Surveying material to current group profitability  Surveying profits less cyclical  New contract wins enhance earnings  Potential to improve losses in estate agency  So

  14. Slide 14: Summary

    Summary Business responding well to challenging market conditions Survey Estate Agency & Financial Services  Flexible panel management model; strong  Challenging market relationships with diverse client base  Growth of non-agency income (e.g. financial  Contribution to increased market share ser

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