Lsl Property Services Plc · LSE:LSL
Lsl Property Services — FY2010 Earnings Presentation
21 slides from Lsl Property Services's earnings presentation, March 2011
Slide 1: Preliminary Results Presentation
Preliminary Results Presentation Year ended 31 December 2010 March 2011 1
Slide 2: Executive Summary
LSL Property Services plc Year end results presentation March 2011 Executive Summary Strong cash generation and balance sheet • Net debt reduced by £20.8m to £4.9m • Total dividend increased by 56% to 8.4p Excellent earnings growth despite transaction volumes circa 50% of historic normalised levels
Slide 3: Progress Highlights
LSL Property Services plc Year end results presentation March 2011 Progress Highlights Agency – Asset Agency – Financial Surveying Agency – Branches Management Services LSL Market leader #2 in market Market leader #4 in market position 2010 2010 market down 7% 2010 market down 4% 2010 market down 8%
Slide 4: Financial Performance
LSL Property Services plc Financial Performance
Slide 5: Summary Group Financials
LSL Property Services plc Year end results presentation March 2011 Summary Group Financials Actual LFL £m 2010 2009 2010 2009 P&L Revenue 206.6 157.7 31% 182.4 157.7 16% Underlying Group Operating Profit(1) 31.9 28.3 13% 35.1 28.3 24% Margin 15.5% 17.9% 19.3% 17.9% Exceptionals 10.2 (0.4) EBITA - LF
Slide 6: Financial Performance – Surveying
LSL Property Services plc Year end results presentation March 2011 AWARDS Financial Performance – - Winner Best Surveyor/Valuer Surveying Surveying Segment 2010 2009 Mortgage approvals ‘000 1,203 1,301 (7%) Strong performance in deteriorating market Jobs ‘000 531 439 21% Turnover £m 80.9 70.0 16% Ma
Slide 7: Financial Performance – Estate Agency
LSL Property Services plc Year end results presentation March 2011 Financial Performance – Estate Agency Market 2010 2009 Inc/ (dec) House Puchase Mortgage Approvals 575,000 597,000 (3.7%) Actual – including HEAL Like for Like – excluding HEAL KPIs 2010 2009 Inc / (dec) 2010 2009 Inc/ (dec) Exchange
Slide 8: Financials – Exceptional Profit
LSL Property Services plc Year end results presentation March 2011 Financials – Exceptional Profit £m £m HEAL Negative goodwill at half year was provisional HEAL Negative Goodwill 29.8 Additional £0.5m redundancy costs in H2 Redundancy costs (7.7) Acquisition and re-branding costs (6.1) 16.0 Finance
Slide 9: Financials – Cashflow and Debt
LSL Property Services plc Year end results presentation March 2011 Financials – Cashflow and Debt Continued Strong Cash Generation £m 2010 2009 Operating Cashflows Operating Profit 31.9 28.3 Depreciation 1.8 1.4 HEAL receipts and expenditure as planned. Net cash Working Capital 2.0 1.1 from HEAL acq
Slide 10: Market and Strategy
LSL Property Services plc Market and Strategy
Slide 11: Mortgage Market Overview
LSL Property Services plc Year end results presentation March 2011 Mortgage Market Overview House Purchase Approvals Annual Growth in Mortgage Approvals (’000) (%) 800 150% 700 100% 600 50% 500 400 0% 300 -50% 200 100 -100% 03 04 05 06 07 08 09 10 Jul Jul Jul Jul Jul Jul Jul Jul Jan-03 Jan-04 Jan-05
Slide 12: Strategy
LSL Property Services plc Year end results presentation March 2011 Strategy Agency – Asset Agency – Financial Surveying Agency – Branches Management Services LSL position Market leader #2 in market Market leader #4 in market HEAL lettings and FS revenue LSL 2011 Service levels Integration of the
Slide 13: Surveying: Operations and Development
LSL Property Services plc Year end results presentation March 2011 Surveying: Operations and Development Market Share Growth Operational Update Surveying Market Share Growth ’000 2007 2008 2009 2010 Santander long term contract Jobs Performed 533 461 439 531 High service levels maintained and regula
Slide 14: Estate Agency – HEAL
LSL Property Services plc Year end results presentation March 2011 Estate Agency – HEAL Dramatic improvement in profitability – delivered H2 profit despite market conditions Results Progress HEAL H1 10 H2 10 Total Transformed from losses of >£50m in KPIs 2008 to H2 profit of £0.4m. Full year 2010 Ex
Slide 15: Estate Agency – Market share growth
LSL Property Services plc Year end results presentation March 2011 Estate Agency – Market share growth Strategy Market Share 6% 5% 1.3% Investment in branch refurbishment and 4% 1.0% staff numbers 3% 2% 3.7% Upgrade management 1% 2.3% 3.1% 3.0% 0% Segmentation H1 2009 H2 2009 H1 2010 H2 2010 Origina
Slide 16: Estate Agency – Counter Cyclical Income
LSL Property Services plc Year end results presentation March 2011 Estate Agency – Counter Cyclical Income Balanced Growth: Asset Management and Lettings Total asset management and lettings income up 25% to £38.5m £m 45 • Asset Management up 49% 40 • Lettings up 14% 35 30 LFL asset management and le
Slide 17: Financial Services
LSL Property Services plc Year end results presentation March 2011 Financial Services Investment in the FS channel has helped to strengthen LSL’s relationship with key lender clients LSL position transformed during 2010 Now Before YM, RR, Linear 353 Your Move, Reeds Rains, Linear Home of Choice 410
Slide 18: Summary
LSL Property Services plc Year end results presentation March 2011 Summary Excellent results despite transaction volumes circa 50% of historic normalised levels LSL’s market positions transformed during 2010 Strong balance sheet – well placed for selective acquisitions Market outlook for 2011 still
Slide 19: Appendices
LSL Property Services plc Appendices
Slide 20: LSL's Genesis
LSL Property Services plc Year end results presentation March 2011 LSL’s Genesis LSL’s 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 Re
Slide 21: Who are We Now?
LSL Property Services plc Year end results presentation March 2011 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 (Emplo