Lsl Property Services Plc · LSE:LSL
Lsl Property Services — H1 2021 Earnings Presentation
26 slides from Lsl Property Services's earnings presentation, Jun 30, 2021
Slide 1: Growth. Focus. Execution. Interim Results 2021
Growth. Focus. Execution. Technology. People. Interim Results for six months ended 30 June 2021
Slide 2: LSL company overview
LSL is one of the largest providers of services to mortgage intermediaries, specialist mortgage and protection advice to estate agency and new build customers and valuation services to the UK’s biggest mortgage lenders. It also operates a network of 228 owned and 127 franchised estate agency branche
Slide 3: Agenda
Agenda Financial Highlights 4 Strategy Recap and Progress 6 Financial and Operating 10 Performance Summary and Outlook 21 Appendix: 2019 – 2021 24 INTERIM RESULTS 2021 3
Slide 4: Strong Trading Performance
Strong Trading Performance Group Record financial performance as LSL took advantage of favourable market conditions and reporting a net cash position for the first time since IPO Group Revenue Profit Before Tax ▪ Record H1 revenue, profit and margin £166.5m £25.5m ▪ Each operating division profit ma
Slide 5: Agenda
Agenda Financial Highlights 4 Strategy Recap and Progress 6 Financial and Operating 10 Performance Summary and Outlook 21 Appendix: 2019 – 2021 24 INTERIM RESULTS 2021 5
Slide 6: Strategy Recap
Strategy Recap Group New strategy stated at the Prelims with Financial Services at its heart INTERIM RESULTS 2021 6
Slide 7: Strategy Execution On Track
Strategy Execution On Track Group Significant progress implementing the strategy outlined at the Prelims with Financial Services at the heart of the business Senior Appointments Group Simplification The Property Franchise Group ▪ David Akinluyi as Group COO to ▪ Combined £41m sale of assets ▪ Agreem
Slide 8: Strategy Execution On Track
Strategy Execution On Track Group Further progress made at divisional level Financial Services Surveying & Valuation Estate Agency ▪ New Direct to Consumer ▪ Improved Surveying & Valuation ▪ Increased market share of core infrastructure, including management margin (25%) catchment areas following re
Slide 9: Agenda
Agenda Financial Highlights 4 Strategy Recap and Progress 6 Financial and Operating 10 Performance Summary and Outlook 21 Appendix: 2019 – 2021 24 INTERIM RESULTS 2021 9
Slide 10: Financial Summary
Financial Summary Group Record H1 financial performance, strong net cash position and strategy on track 2021 Results ▪ Record H1 revenue, profit and margin ▪ Each operating division profit materially ahead of 2020 ▪ Long-term growth in Financial Services continues ▪ July trading in line with expecta
Slide 11: H1 2021 Highlights
H1 2021 Highlights Group Strong performance in H1 2021 Total Revenue (£m) 2021 2020 40 2019 35 30 25 20 ▪ Record June Revenue ahead of Stamp Duty tapering 15 ▪ Growth in number of financial advisers continues 10 5 ▪ Pipeline of new financial advisers grew in H1 - ▪ Strong Surveying margin Jan Feb Ma
Slide 12: Financial Highlights
Financial Highlights Group Strong operational performance reflecting growth across all our divisions H1 P&L (£m) 2021 2020 Change ▪ Record H1 Group Revenue, Group Underlying Operating Profit and Group Operating Margin % Group Revenue 166.5 114.9 45% ▪ Significant profit growth in each Division again
Slide 13: Historic Performance and Growth Trajectory
Historic Performance and Growth Trajectory Group Financial Services achieved a profit CAGR of +28% between 2017 and 2021. The Board has set out a clear strategy to grow returns in this area, reducing reliance on housing market cycles Rolling 12-month Operating Profit by Division (£m) (excluding Cent
Slide 14: Financial Services
Financial Services Revenues are diversified across multiple channels and products, including mortgages, protection and insurance Total Financial Services Revenue Mix by Type Financial Services Revenue Mix by Channel Financial Services 15% 39% 46% Mortgage Fees Life & General Insurance Fees Other Fee
Slide 15: Financial Services
Financial Services Financial Services profit growth during a period of investment in Mortgage Gym, TPFG infrastructure/contract win and establishment of Pivotal Growth ▪ Material H1 revenue growth, less marked than other Divisions FS H1 P&L (£m) 2021 2020 Change as Financial Services less impacted b
Slide 16: Surveying & Valuation
Surveying & Valuation Agile and effective response to increasing demand and delivering improved margins S&V H1 P&L (£m) 2021 2020 Change ▪ High quality of service maintained in very busy market Total Revenue 46.2 31.1 48% Underlying Operating Profit ▪ Margin benefited from increased surveyor utilisa
Slide 17: Estate Agency
Estate Agency Increased market share with the increase in housing market activity continuing throughout Q2 Estate Agency H1 P&L (£m) 2021 2020 Change Residential Sales Exchange Income 40.4 18.6 117% ▪ Increased market share across core catchment areas Lettings Income 30.1 27.4 9% Financial Services
Slide 18: Balance Sheet
Balance Sheet Group Strong and flexible balance sheet, boosted by disposals positioning us to make further investments to secure out strategy Balance Sheet (£m) 2021 2020 ▪ Net Cash reported for the first time since IPO Net Cash / (Debt) (reported) 17.0 (12.7) ▪ Disposal of Investments in May and Ju
Slide 19: Cash Flow
Cash Flow Group Profits turn into cash: strong operational cash-flow and conversion of Underlying Operating Profit consistently over 100% Underlying Cash Flow Conversion: 100% INTERIM RESULTS 2021 19
Slide 20: Agenda
Agenda Financial Highlights 4 Strategy Recap and Progress 6 Financial and Operating 10 Performance Summary and Outlook 21 Appendix: 2019 – 2021 24 INTERIM RESULTS 2021 20
Slide 21: Summary
Summary Group ▪ Substantial and demonstrable progress in implementation of stated strategy ▪ Significant organic and inorganic growth opportunities across the Group to create value for shareholders ▪ Well-positioned in Financial Services to capitalise on leading market positions ▪ Sale of non-core h
Slide 22: Outlook
Outlook Group ▪ Likelihood of reduced H2 activity below recent record peaks ▪ H1 2021 Operating Profit slightly ahead of expectations ▪ At 2020 Prelims, recommenced guidance with improved growth profile ▪ Confident that full year profit outturn will be in line with our expectations, substantially mo
Slide 23: Agenda
Agenda Financial Highlights 4 Strategy Recap and Progress 6 Financial and Operating 10 Performance Summary and Outlook 21 Appendix: 2019 – 2021 24 INTERIM RESULTS 2021 23
Slide 24: Financial Highlights H1 2019-2021
Financial Highlights H1 2019-2021 Group H1 P&L (£m) 2021 2020 2019 Group Revenue 166.5 114.9 154.1 Group Underlying Operating profit 27.3 9.7 12.2 (post COVID-19 costs) Group Underlying Operating margin 16% 8% 8% (post COVID-19 costs) Group Underlying Operating profit 27.3 12.5 12.2 (pre COVID-19 co
Slide 25: Financial Highlights H1 2019-2021
Financial Highlights H1 2019-2021 Group H1 P&L (£m) 2021 2020 2019 Revenues Financial Services 39.1 28.1 34.3 Surveying and Valuation Services 46.2 31.1 42.7 Estate Agency 81.2 55.7 77.1 Group Revenue 166.5 114.9 154.1 Underlying Operating Profit Financial Services 7.8 4.6 4.3 Surveying and Valuatio
Slide 26: Disclaimer
Disclaimer Group ▪ This document contains certain statements that are forward-looking statements. They appear in a number of places throughout this document and include statements regarding our intentions, beliefs or current expectations and those of our officers, directors and employees concerning,
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