Slide 1: Half Year Results Presentation
Half Year Results Presentation Six Months Ended 30 June 2010 August 2010 1
Slide 2: Key Messages and Delivery H1 2010
LSL Property Services plc Half year results presentation August 2010 Key Messages and Delivery H1 2010 Lettings and asset management income Acquisition of Halifax Estate growth of 28% from £13.4m to Underlying group profit (1) up 24% Agency creating the 2nd largest £17.1m to UK Estate Agency in Jan
Slide 3: Group Highlights
LSL Property Services plc Half year results presentation August 2010 Group Highlights Group Operational Underlying like for like Group Operating Surveying Profit up 56% to £17.0m (H1 2009 £10.9m) Strong overall result – revenue up 17% to Like for like turnover up 22% to £90.2m £42.3m (2009:£36.0m) a
Slide 4: Financial Performance
LSL Property Services plc Financial Performance
Slide 5: Summary Group Financials
LSL Property Services plc Half year results presentation August 2010 Summary Group Financials Actual LFL H1 H1 £m H1 2010 H1 2009 2010 2009 P&L Revenue 101.1 74.1 36% 90.2 74.1 22% Underlying Group Operating Profit 13.4 10.9 24% 17.0 10.9 56% Margin 13.3% 14.6% 18.8% 14.6% Exceptionals 11.1 (0.2) Ad
Slide 6: Financial Performance – Surveying
LSL Property Services plc Half year results presentation August 2010 AWARDS Financial Performance – - Winner Best Surveyor/Valuer Surveying Surveying Segment H1 2010 H1 2009 Mortgage approvals 610 642 (5%) Strong performance in declining market Jobs 272 215 27% Turnover 42.3 36.0 17% Further increas
Slide 7: Financial Performance – Estate Agency
LSL Property Services plc Half year results presentation August 2010 Financial Performance – Estate Agency Market H1 2010 H1 2009 Inc/ (dec) House Puchase Mortgage Approvals 295,000 266,000 10.9% Actual – including HEAL Like for Like – excluding HEAL KPIs H1 2010 H1 2009 Inc / (dec) H1 2010 H1 2009
Slide 8: Financials – Exceptional Profit
LSL Property Services plc Half year results presentation August 2010 Financials – Exceptional Profit £m £m Interest rate hedge HEAL £25m fixed at blended 2.95% above LIBOR Negative Goodwill 29.1 Redundancy costs (7.2) Fair value hedge of £1.3m taken to P&L as net Acquisition and re-branding costs (6
Slide 9: Financials – Cashflow and Debt
LSL Property Services plc Half year results presentation August 2010 Financials – Cashflow and Debt Continued Strong Cash Generation £m H1 10 H1 09 Operating Cashflows Operating Profit 13.4 10.6 Interest costs reflect £25m hedge Depreciation 0.7 0.9 Working Capital 0.4 (2.9) Refurbishment of all 1.1
Slide 10: Market and Strategy
LSL Property Services plc Market and Strategy
Slide 11: Mortgage Market Overview
LSL Property Services plc Half year results presentation August 2010 Mortgage Market Overview House Purchase Approvals Annual Growth in Mortgage Approvals (’000) (%) Total Mortgage Approvals House Purchase Approvals Some recovery in H2 2009 but transaction levels much (m) lower than long term averag
Slide 12: Surveying: Operations and Development
LSL Property Services plc Half year results presentation August 2010 Surveying: Operations and Development Market Share Growth Contract / Clients Update Surveying Market Share Growth H1 H2 Santander long term contract ’000 2007 2008 2009 2009 H1 2010 Jobs Performed 533 461 215 224 272 Other key clie
Slide 13: Estate Agency – Growth / Market share
LSL Property Services plc Half year results presentation August 2010 Estate Agency – Growth / Market share Market Share (incl HEAL) Average Listings per branch (excl HEAL) Refurbishment of all branches at cost of £1.9m. Last completed in 2004 Increases in advertising presence and headcount Strategic
Slide 14: Estate Agency – Counter Cyclical Income
LSL Property Services plc Half year results presentation August 2010 Estate Agency – Counter Cyclical Income Balanced Growth: Asset Management and Lettings Total asset management and lettings income up 28% to £17.1m LFL asset management and lettings up 8% to £14.5m At half year repossessions market
Slide 15: Estate Agency – HEAL
LSL Property Services plc Half year results presentation August 2010 Estate Agency – HEAL Fully integrated and in line with management expectations Results Progress H1 loss of £3.6m in line with plan Excellent growth in St Trinity Asset Management Cost base right sized to run rate of £28m In additio
Slide 16: Summary
LSL Property Services plc Half year results presentation August 2010 Summary H1 Results – strong growth despite the lacklustre market Experienced management team Highly profitable surveying division Second largest estate agency in the UK by number of branches Fast growing asset management business P
Slide 17: Appendices
LSL Property Services plc Appendices
Slide 18: LSL’s Genesis
LSL Property Services plc Half year results presentation August 2010 LSL’s Genesis LSLs business transformation from a loss making insurance distribution arm Key Events July 2001 October July February January January New Acquisition of Acquisition of onwards First Complete Completion on management R
Slide 19: Who are We Now?
LSL Property Services plc Half year results presentation August 2010 Who are We Now? LSL Property Services plc Residential Property Buyers and Sellers Customer Capture Estate Agency and Surveying Financial Services Strategic Business Cross Selling Surveying Surveying Surveying Current Surveyors (Emp