Slide 1: Preliminary Results Presentation
Preliminary Results Presentation Year Ended 31 December 2008 Simon Embley, Group Chief Executive Officer Dean Fielding, Group Finance Director March 2009
Slide 2: Key messages & delivery 2008
Key messages & delivery 2008 Estate Agency diversification Exchange income down 59% Segment revenue down 38% Other income up 17% Successful launch of Group profit* Corporate Client Growing diversity Despite market, profit £18.2m Department - repossessions of estate agency Compares favourably with &
Slide 3: Highlights
Highlights Group Revenue down 26% to £161.8m (2007:£219.5m) Underlying Group Operating Profit* at £18.2m (2007:£37.2m) Operating costs reduced by 21% to £144.3m (2007:£183.4m) Exceptional costs of £8.2m (2007: £1.4m), primarily reorganisation and restructuring costs necessary to reduce opera
Slide 4: Financials at a glance
Financials at a glance Satisfactory profits in 2008 in unprecedented market conditions EBITA Full Year * Total Mortgage Approvals 40 20% Total Approvals 16.4% 16.9% 35 18% 13.9% 16% 4 3.38 3.53 3.29 30 EBITA margin 14% EBITA (£m) 11.3% 3 Units (m) 25 10.1% 12% 1.98 20 10% 2 37.2 15 32.3 8% 1 6% 10 1
Slide 5: Group Income Statement
Group Income Statement Significant exceptional costs and significant cost reductions achieved Group Income Statement 2007 2008 Turnover 219.5 161.8 Turnover down by 26%. Net Expenditure -182.3 -143.6 Expenditure reduction of £38.7m (21%). Underlying Group Operating Profit 37.2 18.2 Share based payme
Slide 6: Strong Cash Flow
Strong Cash Flow Strong cash generation with minimal capital expenditure requirement…… £m 2007 2008 H1 2008 H2 2008 Underlying Group operating profit 37.2 18.2 9.3 8.9 Depreciation & other 2.2 2.3 1.1 1.2 Proceeds from sale of equipment 0.0 0.1 0.0 0.1 Loss on sale of equipment 0.0 0.4 0.0 0.4 Excep
Slide 7: Operational Performance: Surveying
Operational Performance: Surveying Continued growth in market share Surveying Segment Market Share Growth 2006 2007 2008 H1 2008 H2 2008 2005 2006 2007 2008 Turnover (£m) 74.0 89.9 80.1 44.9 35.2 Jobs performed ('000s) 378 434 533 461 Expenditure (£m) -53.0 -63.5 -51.4 -29.5 -21.9 Mortgage approvals
Slide 8: 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 8 The UK’s market leading valuation distributor
Slide 9: Surveying: Development
Surveying: Development Market backdrop New products & opportunities Marketing conditions for all valuation firms are Focus on maintaining lender relationships difficult: Mortgage approvals down by 40% yoy A number of key contracts renewed H2 was actually worse than H1 (H1:1.225m, New contr
Slide 10: Operational Performance: Estate Agency & Financial Services
Operational Performance: Estate Agency & Financial Services Estate Agency Segment Your Move & Reeds Rains KPIs % 2006 2007 2008 H1 2008 H2 2008 2007 2008 Change Turnover (£m) 102.6 107.1 66.7 39.4 27.3 Exchange Units 31277 13683 -56% Expenditure (£m) -89.2 -93.3 -74.0 -43.5 -30.5 Average fee (£) 221
Slide 11: Estate Agency & Financial Services: Development
Estate Agency & Financial Services: Development Continued investment in organic growth : First Complete a key business Lettings Repossessions Management Lettings growth is a key group initiative LSL’s Corporate Client Department, a trading name of First Complete, launched a Repossessions Management
Slide 12: Market Outlook (short term)
Market Outlook (short term) In the short-term we are seeing a massive adjustment to residential asset prices, brought on by the world banking crisis UK Mort Apps 1650 Comparing the 1990s to what we are witnessing today, in the 7 years up to 1996 transaction volumes fell by 1.8 million. 1450 Number
Slide 13: 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
Slide 14: 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 stabilised, albeit at an flexibility extremely low level Reduced cost base to reflect reduction in remortgage Ti