LSL Property Services plc, a provider of residential property services, has announced a slump in estate agency revenues during its latest trading period.
In a newly published trading update for the four month period to 31 October 2019, the group confirmed that estate agency revenue had fallen by 19%.
Overall revenues for the group, who own Your Move, Reeds Rains and Marsh & Parsons, fell by 3% to £262.8m during the same period.
The group’s revenues, it says, were partly disrupted due to the “impact” of reshaping Your Move and Reeds Rains branch networks during this time.
It also spoke of continued “challenging” London market conditions during the four-month period ending in October.
Marsh and Parsons, however, delivered a “resilient” revenue performance with total revenue down only 4%. Residential exchange income was flat and Lettings income declined by 1%.
However, group revenues rose by 5% when excluding the impact of planned closures to these branches.
The group are also “confident” that they will deliver a yearly operating profit in line with expectations.
In other areas, the value of LSL’s mortgage completions in the ten months to 31October was £26bn, marking a 7% year-on-year increase.
Revenue in the surveying division also rose by 18%.
CEO Ian Crabb said: “LSL has delivered a creditable performance in the 10 months to 31 October 2019.
“This performance has been delivered during a period when market activity levels have remained subdued given the continued uncertainty over the UK and global political and economic environment.
“LSL’s performance illustrates the benefits of the group’s diversified strategy and the self-help initiatives being taken to respond to current market conditions.”
He added: “Until we have greater clarity on the political backdrop, we remain cautious on the market outlook for 2020 and we will continue to monitor market conditions closely.
“The group’s diversified strategy combined with its robust balance sheet gives the board confidence of the opportunities for further positive progress for the group.”
