Lsl Property Services Plc · LSE:LSL

Lsl Property Services — H1 2009 Earnings Presentation

15 slides from Lsl Property Services's earnings presentation, August 2009

  1. Slide 1: Half Year Results Presentation

    Half Year Results Presentation Six Months Ended 30 June 2009 Simon Embley, Group Chief Executive Officer Dean Fielding, Group Chief Finance Director August 2009

  2. Slide 2: Key messages & delivery H1 2009

    Key messages & delivery H1 2009 House Housepurchase purchaseapprovals approvalsdown down48% 48% Estate Estateagency agencyrevenue revenuedown down21% 21% Profit Profitimprovement improvementofof£4.3m £4.3m through throughdiversification diversification Successful Successfullaunch launchofofCorporate

  3. Slide 3: Highlights

    Highlights Group „ Group revenue declined to £74.1m (2008: £93.1m) „ Underlying Group Operating Profit up 17% to £10.9m (2008: £9.3m). Profit before tax was £4.3m (2008: loss before tax of £1.8m) „ Management focus on reducing costs has resulted in operating costs down by 25% and operating margin up

  4. Slide 4: Who are we now?

    Who are we now? LSL Property Services plc Surveyors (Employees) Estate Agency Owned Franchised e.surv 285 Your Move 159 57 Barnwoods 84 Reeds Rains 106 16 Total 369 LSLi 18 1 Total 283 74 Expertise in residential property management 4

  5. Slide 5: Financials at a glance

    Financials at a glance Profit growth in H1 2009 despite unprecedented market EBITA Full Year * Total Mortgage Approvals 40 20% Total Approvals 16.4% 16.9% 35 18% 13.9% 16% 2 30 1.75 1.77 1.77 1.78 1.63 Units (m) EBITA margin 11.3% 14% 1.5 1.51 EBITA (£m) 25 10.1% 1.23 12% 1 0.76 20 37.2 10% 0.5 0.64

  6. Slide 6: Profit track record

    Profit track record Significant cost reductions & more robust business model Group Income Statement Group Financial Overview (£m) H1 H1 2009 2008 2008 H1 H1 H1 Turnover 74.1 93.1 161.8 2007 2008 2007 2008 2009 Net Expenditure -63.2 -83.8 -143.6 House purchase Underlying Group Operating Profit 10.9 9

  7. Slide 7: Strong Cash Flow

    Strong Cash Flow Strong cash generation with minimal capital expenditure Last 12 £m 2008 H1 2008 H2 2008 H1 2009 months Underlying Group operating profit 18.2 9.3 8.9 10.9 19.8 Depreciation & other 2.3 1.1 1.2 0.8 2.0 Proceeds from sale of equipment 0.1 0.0 0.1 0.0 0.1 Loss on sale of equipment 0.4

  8. Slide 8: Operational Performance: Surveying

    Operational Performance: Surveying Continued growth in market share Surveying Segment Market Share Growth 2006 2007 2008 H1 2008 H2 2008 H1 2009 Turnover (£m) 74.0 89.9 80.1 44.9 35.2 36.0 2005 2006 2007 2008 H1 2008 H1 2009 Jobs performed ('000s) 378 434 533 461 257 215 Expenditure (£m) -53.0 -63.5

  9. Slide 9: 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 Exclusive panel manager Service provider Panel manager and manager of lender employed surveyors Joint panel manager Source: Company data 9 The U

  10. Slide 10: Surveying: Development

    Surveying: Development Market backdrop New products & opportunities Market conditions remain difficult: „ Scottish single survey launched 1st „ Total mortgage approvals down by 48% yoy December. Market in Scotland weak, but providing a current and future income „ Remortgage volumes down from 0.6m H1

  11. Slide 11: Operational Performance: Estate Agency & Financial Services

    Operational Performance: Estate Agency & Financial Services Estate Agency Segment 2007 2008 H1 2007 H2 2007 H1 2008 H2 2008 H1 2009 „ Cost base reduction 27% House purchase approvals 1.26 0.52 0.69 0.57 0.33 0.19 0.26 „ Other income streams now Exchange units YM/RR 31277 13683 15990 15287 8525 5158

  12. Slide 12: Estate Agency: Development

    Estate Agency: Development Developing counter cyclical income streams Corporate Client Department „ Lettings, significant focus across all brands, „ Set up in H1 2008, turnover growth impressive. growth of 35% v. H1 2008 Run rate growing monthly. „ Now offered in all LSL estate agency owned „ 626 co

  13. Slide 13: Market Outlook (short term)

    Market Outlook (short term) In the short-term we are seeing a substantial adjustment to residential asset prices, brought on by the world banking crisis. 1650 UK Mort Apps „ Comparing the 1990s to what we are witnessing today, in the 7 1450 years up to 1996 transaction volumes fell by 1.8 million. N

  14. Slide 14: Market Outlook (long term)

    Market Outlook (long term) The long-term prognosis for residential property is extremely good, based on supply and demand analysis New Households forecast v New builds Completed 300000 „ Over the last ten years we have had an under-supply of 40,000 250000 units per year in the UK Number in ('000s) 2

  15. Slide 15: Summary

    Summary The business is well placed in 2009 in the face of an extremely challenging market Survey Estate Agency „ Flexible panel management model and operational „ Market volumes have improved, albeit against flexibility unprecedented lows „ Reduced cost base to reflect reduction in „ Timing of reco

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